As the second-quarter earnings season winds down, S&P 500 results are presenting a mixed picture, with companies beating analysts' profit expectations at the highest rate in nearly two years even as revenue beats dropped to the lowest since early 2020.has edged higher since earnings season began in July, with the benchmark index up 16% in 2023. But expectations call for corporate profits to pick up as the U.S.
Overall, second-quarter earnings are expected to have fallen 3.8% from a year earlier, Refinitiv IBES data showed. That decline follows a 0.1% rise in the first quarter and a 3.2% drop in the fourth quarter of last year. This year's valuation expansion accounted for 86% of the S&P 500's year-to-date return through July, with the rest of the market's boost coming from positive changes to earnings estimates, an analysis by Credit Suisse equity strategists showed.
However, for revenue, only 62.9% of companies have topped expectations - the lowest beat rate since the first quarter of 2020.