What's behind the high earnings expectations for Q2?

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Earnings Estimates Nouvelles

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Wall Street consensus expects earnings to grow 9% from the same period last year during the second quarter, which would mark the largest year-over-year gain ...

Wall Street consensus expects earnings to grow 9% from the same period last year during the second quarter, which would mark the largest year-over-year gain since the 2021's fourth quarter.

I'm curious how big of a driver you see earning season really being if, if it's going to be enough here to keep this momentum to the. You've seen uh you know, kind of index level volatility remain very low, but that that single stock volatility has been really high, right?But I wonder at this point if you have earnings misses that, you know, aren't accompanied by, you know, really negative revisions to kind of the uh forward guidance, right?

And that makes sense right, given their balance sheets are, you know, kind of, you know, generally better positioned and the smaller cap companies, you know, have more interest rate sensitivity, you know, and then as you kind of get into that kind of three month time frame ahead of uh the first rate cut in a cycle, you do start to see those small caps start to, you know, kind of outperform and that can continue into that kind of 3 to 6 months after the first cut cycle.

 

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