Q2 earnings season sees strong growth in Tech sector with positive outlook

From Nasdaq MarketSite: 2024-07-05 15:31:00

The June-quarter reporting cycle is set to begin with JPMorgan and other major banks on July 12th. Earnings growth is steadily accelerating, with +8.4% growth in 2024 Q2 – the highest in almost two years. Estimates for Q2 are holding up better than in previous periods, with positive revisions seen in various sectors.

The Tech sector, including the ‘Magnificent 7 Stocks’, is expected to have a robust earnings outlook. The Tech sector shows strong growth, with Q2 being the fourth consecutive quarter of double-digit earnings growth. Tech sector earnings are projected to be up +15.7% with higher revenues, impacting the overall index’s earnings positively.

For the 19 S&P 500 members reporting Q2 results already, total earnings are up +25.7% from last year on +4.4% higher revenues. 84.2% beat EPS estimates, but only 36.8% beat revenue estimates. Total 2024 S&P 500 earnings are expected to be up +9.1% on +1.7% revenue growth. The index level aggregate earnings growth remains at +9% on an ex-Finance basis.



Read more at Nasdaq MarketSite:: 3 Key Things to Know About the Q2 Earnings Season