Looking Ahead to the Q2 Earnings Season
From Nasdaq: 2025-06-27 18:38:00
In Q2, earnings are expected to rise by 5% while revenues are projected to increase by 4%, marking a slowdown in growth compared to previous quarters. Earnings estimates for the quarter have been decreasing steadily, with the biggest cuts seen in sectors like Conglomerates, Autos, and Transportation.
Earnings estimates for Q2 have declined for 13 out of 16 Zacks sectors, with Tech and Finance sectors also experiencing cuts. However, the revisions trend for the Tech sector has stabilized in recent weeks, indicating a potential turnaround. The easing of tariff uncertainty has contributed to this stabilization in estimates.
The Q2 earnings season has begun, with 18 S&P 500 members reporting results so far. Total earnings for these companies are up 3.1% year-over-year, with 83.3% beating EPS estimates. Early results show a positive trend, with 88.9% surpassing revenue estimates. Companies like Nike and FedEx have beat consensus estimates in their recent earnings releases.
Constellation Brands, a producer of alcoholic beverages, is set to report earnings. The company faces challenges due to affordability issues affecting consumption trends, as well as aluminum tariffs impacting beer can costs. Other notable recent earnings releases include Nike and FedEx, both of which exceeded expectations despite facing challenges in their respective markets.
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