Q2 Earnings Surpass Expectations: Corporate America Exhibits Robustness
Corporate America has outperformed expectations with its second quarter results, as a whopping 82% of S&P 500 companies surpassed analyst estimates by an impressive average of 8.5%. This encouraging earnings momentum has propelled forecasts for full-year earnings growth to a robust 9.7%, a significant leap from the modest 3.8% at the end of the second quarter.
The technology and communications sectors spearheaded the gains, both recording over 20% year-over-year growth. Standout performers included companies such as Block, which elevated its full-year gross profit guidance to $10.17 billion, and Expedia Group, whose shares soared over 16% after exceeding second-quarter expectations.
However, not all sailed smoothly. Certain companies encountered challenges, with Under Armour plummeting 21% after falling short of estimates and voicing concerns about tariff uncertainty impacting consumer demand in North America.
Source: Edward Jones