Q2 retail earnings show positive growth, but concerns for future outlook as estimates decrease.

From Nasdaq: 2024-08-21 19:30:00

The Q2 earnings season showed stable corporate profitability, but concerns arise for the outlook. 94.6% of S&P 500 companies reported +8.0% earnings growth and +5.0% revenue growth. Retail sector earnings were up +17.3%, but negative growth without Amazon. Target had a big beat, but lagged Walmart in share performance.

For the 2024 Q3 period, S&P 500 earnings are expected to grow +3.9% with +4.6% higher revenues. Estimates have decreased, with 14 of 16 sectors experiencing cuts. Tech and Finance sectors saw positive revisions. Revenue weakness in Finance sector impacted overall earnings growth, with margin gains contributing half.

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