Some 80% of S&P 500 reports beating earnings estimates
- Nasdaq off ~0.5%, S&P 500 off ~0.4%, Dow is flat
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- Dollar edges up; gold rises ~0.3%; crude off ~1.6%; bitcoin down ~1.5%
- US 10-Year Treasury yield barely up at ~4.20%
SOME 80% OF S&P 500 REPORTS BEATING EARNINGS ESTIMATES
Even as more companies comment about the likely impact of U.S. President Donald Trump's tariffs on their businesses this earnings season, a higher-than-average percentage of reports from S&P 500 companies are beating analysts' expectations in the second quarter.
According to LSEG, 80.6% of reports so far have beaten analysts' expectations on earnings, which Tajinder Dhillon, senior research analyst, analytics, at LSEG, says is the highest "beat rate" since the third-quarter of 2023. It's also above the 76% average of the past four quarters.
As such, the overall estimated growth for S&P 500 earnings in the second quarter has been moving higher. S&P 500 earnings growth last estimated at 11.2%, LSEG data shows as of Friday. That's based on results from 330 of the S&P 500 companies.
"This is an improvement of 540 basis points since the start of earnings season," Dhillon writes.
On July 1, before the reporting season kicked off, analysts had forecast earnings growth for the second quarter of just 5.8%.
(Caroline Valetkevitch)
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