S&P 500 quarterly earnings have been upbeat; revenue not so much

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S&P 500 companies have been reporting upbeat bottom lines for the June quarter, but not such impressive increases in their revenue.

With second-quarter reporting season nearly complete, 79% of companies have posted earnings that beat analysts' expectations, according to fresh data from Refinitiv I/B/E/S.

In a typical U.S. earnings season, most companies report results that are higher than analysts' average estimates, but the number of beats and misses varies by quarter. This quarter's beat rate for earnings per share is the highest since the third quarter of 2021, and it suggests an uncertain economy has hurt companies less than feared.

However, nearly 64% of companies have posted revenue that exceeded Wall Street's expectations, the lowest beat rate for that metric since the first quarter of 2020. The recent upbeat earnings performance of many S&P 500 companies follows waves of job cuts this year, prompted by worries the U.S. Federal Reserve's aggressive interest rate hikes might throw the U.S. economy into a downturn.

 

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