U.S. companies are beating profit estimates at record rate

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While it's still early in the earnings period, a record percentage of first-quarter profit reports from major U.S. companies are coming in above analysts' expectations.

Stock Exchange is seen over an entrance to the New York Stock Exchange on Wall St. in New York City, U.S., March 29, 2021. REUTERS/Brendan McDermid

While it’s still early in the earnings period, a record percentage of first-quarter profit reports from major U.S. companies are coming in above analysts’ expectations. Earnings are rebounding from last year's pandemic-fueled lows, but many companies were holding off on giving guidance, making it harder for analysts to estimate results for this year. Some strategists say stronger-than-expected earnings could help underpin the market even as valuations are considered expensive.

With results in from 110 of the S&P 500 companies as of Thursday, 85.5% have beaten analysts' estimates for earnings per share, according to Refinitiv's data. If that trend continues through the reporting season, it would be the highest beat rate on record going back to 1994.Stronger-than-expected results from major banks and other companies have driven up the forecast for the quarter. Earnings are now expected to have risen 33.

is up less than 1% since mid-April when the earnings period kicked into high gear. Wall Street fell Thursday as sources said U.S. President Joe Biden will propose raising taxes on the wealthy next week to fund about $1 trillion in investments.

 

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aliwanas_

Sounds like analysts are doing a poor job of estimating.

Good....plenty of money to pay their fair share in taxes. 👍🏼

Oh thank goodness....I was so worried the rich wouldn’t get richer!

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