Bank of America analysts expect Q2 earnings to beat estimates by 2%, with positive growth outlook.

From Investing.com: 2024-07-13 04:31:01

Bank of America analysts preview the upcoming Q2 earnings season, expecting a 2% beat in earnings. Despite weakening macroeconomic conditions, historical data suggests a 91% chance of beating expectations when the Economic Surprise Index is negative. Analysts have maintained earnings estimates since March, indicating confidence in forecasts.

Q2 may see a shift in growth dynamics, with EPS growth expected for “Other 493” companies but a slowdown for the Magnificent 7. Analysts anticipate a modest 1% real sales growth in the second half, supported by the end of the de-stocking cycle. AI investments continue to rise, with a 34% increase in capital expenditure from hyperscalers expected in 2024.

Overall, BofA’s analysis suggests a positive outlook for earnings season despite potential macroeconomic challenges.



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