Earnings Season is well underway. Let’s start with a look at how overall results are faring so far…..
According to FactSet: For the second quarter of 2024, with 41% of companies in the Standard & Poor’s 500 Index having reported actual results, 78% of S&P 500 companies have reported a positive EPS (Earnings Per Share) surprise, which is above the 10-year average of 74%, and 60% have reported a positive revenue surprise, which is below the 10-year average of 64%. The blended year-over-year growth rate is 9.8%. If 9.8% ends up being the actual growth rate for the quarter, it will mark the highest year-over-year earnings growth rate reported by the index since the fourth quarter of 2021.
Some household names were in focus last week based on their own earnings results. Tesla (TSLA) shares drove over 12% lower after reporting earnings that missed expectations. Google parent Alphabet (GOOG) shares fell even though the company posted beats on both the top and bottom lines. Industrial conglomerate 3M Company (MMM), maker of Scoth Tape and Post-it Notes, surged nearly 23% after their earnings easily surpassed expectations. Shares of RTX Corporation (RTX) shot higher after beating on both earnings and revenues. Last week’s earning action, however, is just a warm-up for what’s ahead this week.
Get ready for the busiest and the most anticipated week of earnings season!
During the upcoming week over 170 Standard & Poor’s 500 companies are scheduled to report earnings results (for the second quarter of 2024). Notable companies reporting this week include McDonald’s, Advanced Micro Devices, Merck, Intel, Boeing, Coinbase Global, GE HealthCare, Pfizer, Starbucks, Mastercard, Moderna, Motorola Solutions, Clorox, Hershey, Chevron, ExxonMobil, T-Mobile US, and Procter & Gamble.
In undoubtedly what will be the most widely followed reports – four of the Magnificent Sevenstocks will be leading the earnings parade this week – Microsoft on Tuesday, Meta Platforms on Wednesday, Amazon.com and Apple on Thursday. These are mega cap stocks that comprise a large weighting in the market and their reports can set the tone for the overall stock market. Buckle up for a busy and eventful week of earnings, and remember, profits are the mother’s milk of stock prices!
As always, please contact us with any questions you may have or if you would like to set up a meeting.
All the best – Southport Station Financial Management, LLC