From Nasdaq: 2025-03-21 19:18:00

Q1 earnings season has not officially started, but early results are mixed. 14 S&P 500 members have reported, including Nike and FedEx. Nike beat expectations but faces a challenging recovery. FedEx missed on both revenue and earnings, lowering guidance for the third consecutive quarter due to ongoing issues. Both companies have struggled to resolve long-term problems.

Lululemon, set to report this week, faces similar challenges to Nike. The company’s stock dropped after last year’s quarterly release, sparking concerns about growth sustainability. Lululemon raised its outlook in January, with current estimates at $5.85 per share for earnings and a +5.16% increase in same-store sales. Shares have declined in 2025 amid tariff worries and macroeconomic headwinds.

Early Q1 earnings have seen a +10.5% increase in total earnings for 14 S&P 500 members compared to last year, with a +5.9% rise in revenue. 57.1% of companies beat EPS estimates and 71.4% beat revenue estimates. However, these early results show the lowest EPS beats percentage in the past 20 quarters, indicating struggles to meet consensus estimates.

Expectations for Q1 earnings stand at +5.9% growth from last year on +3.8% higher revenues. Negative revisions to estimates have been widespread across sectors, with Tech facing challenges due to fluctuating market sentiment. Despite concerns about tariffs and economic growth, the overall corporate earnings picture has been improving steadily in recent quarters, providing optimism for future growth.



Read more at Nasdaq:: Making Sense of Early Q1 Earnings Reports