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US large-cap earnings outpace expectations as growth strengthens
S&P 500 aggregate earnings were 28.3% above analyst expectations, while year-over-year earnings grew 49.6% and sales rose 14.1%.
ETF Trends says the current earnings season is following a similar pattern to past cycles, with markets hovering near all-time highs even as headlines emphasize sticky inflation and ongoing geopolitical conflicts.
According to ETF Trends, US large-cap earnings are especially strong relative to both international peers and small-cap stocks. It cites S&P 500 aggregate earnings running 28.3% higher than analyst expectations, with every sector posting earnings above forecast, and aggregate revenue 3.3% above expectations.
ETF Trends also points to improving forward expectations, saying 12-month forward earnings for the S&P 500 have ticked upward. It adds that year-over-year earnings grew 49.6%, and sales increased 14.1%, both exceeding results from the prior quarter.
On the sector mix, ETF Trends notes that growth acceleration was broadly shared across sectors, with all eleven sectors showing revenue growth and only health care recording negative earnings growth. It also frames the comparison between US large-cap, US small-cap, Europe, and Japan as a way to assess whether earnings could support a value rotation.
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