QVMM - S&P 500 Q2 2024 Earnings Preview: Aggregate Earnings Reaching A New High Watermark?

2024-07-10 13:25:00 ET

Summary

• Q2 aggregate earnings are forecasted to reach a new all-time high, with a current estimate of $492.8 billion.
• The Magnificent-7 are once again expected to play a significant role, boasting an aggregate earnings growth rate of 29.8%.
• Financials has the second-largest positive earnings weight differential at 5.3% with a forward P/E of 15.1x.

Earnings season kicks off this week, and we preview the S&P 500 2024 Q2 earnings season in granular detail, providing both aggregate and company-level insights using data from I/B/E/S, StarMine, and Datastream, which are all found in the desktop solution LSEG Workspace.

Earnings Commentary

Q2 aggregate earnings are forecasted to reach a new all-time high, with a current estimate of $492.8 billion (+10.1% y/y, +4.4% q/q). Growth expectations have only declined moderately by 40 basis points ((BPS)) heading into earnings season, much less than the typical 300 bps downward revision we usually find. Energy saw the largest downgrade of 450 bps, followed by Materials (310 bps), while Information Technology has seen the largest upgrade (150 bps)....

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