From Nasdaq: 2024-07-10 18:50:00

For the second quarter of 2024, S&P 500 earnings are projected to increase by 8.0% compared to the same period last year, accompanied by a 4.6% rise in revenues. This will mark the highest growth rate since the first quarter of 2022. Earnings growth for the Energy sector is expected to turn positive after four consecutive quarters of negative growth. The ‘Magnificent 7’ companies are anticipated to see a 25.5% increase in earnings with a 13.2% rise in revenues, while the rest of the index is expected to show a 4.3% growth in earnings.

Finance sector earnings are predicted to rise by 8.3% in the second quarter of 2024, with a 5.6% increase in revenues. Recent improvements in underlying business trends have led to analysts revising earnings estimates higher, particularly for major banks like JPMorgan, Wells Fargo, and Citigroup. The positive performance of these banks reflects an improving earnings outlook and optimism about the Federal Reserve’s monetary policy.

In addition to the Finance sector, the overall earnings for the S&P 500 index in the second quarter are forecasted to grow by 8.0% with a 4.6% increase in revenues. Tech, Utilities, Transportation, Autos, and Consumer Discretionary sectors have seen positive revisions in estimates, offsetting negative cuts in other sectors. Tech sector earnings are expected to surge by 15.7% in the second quarter, marking the fourth consecutive quarter of robust growth.

The Tech sector’s positive earnings outlook is supported by expected record margins in 2024, driven by higher-margin software and services. The sector’s margins are projected to continue growing in the following years, reflecting optimism about the impact of AI on productivity. Overall, the Tech sector is expected to deliver a strong performance in 2024 and beyond, with margins playing a key role in driving earnings growth.



Read more at Nasdaq:: Earnings Season Gets Underway: Bank Earnings in Focus