Key things to watch: Q2 2024 earnings season
As Q2 2024 earnings season approaches, the S&P 500 is poised for its strongest performance in two years, with projected 8.8% earnings growth and 4.6% revenue growth.
Earnings growth to hit two-year high?
The S&P 500 is expected to report an 8.8% year-over-year (YoY) earnings growth for Quarter 2 (Q2) 2024, potentially marking the highest rate since Quarter 1 (Q1) 2022. This could be the fourth consecutive quarter of YoY earnings growth, signaling a continued recovery trend.
Key highlights
- Eight of eleven sectors are projected to report YoY growth
- Materials sector is predicted to show the largest YoY decline
- Leading sectors with double-digit growth: Communication Services, Health Care, Information Technology and Energy.
Revenue to grow 4.6%
The S&P 500 is expected to report a 4.6% YoY revenue growth, potentially marking the 15th consecutive quarter of revenue growth.
Revenue highlights
- Leading sectors in revenue growth: Information Technology and Energy
- Declining sector: Materials
Negative EPS guidance dominates
60% of S&P 500 companies have issued negative earnings per share (EPS) guidance for Q2 2024, which is above the 5-year average but below the 10-year average. Monitor any shifts in this trend as more companies report their results.
Key points
- Analysts have slightly lowered earnings estimates for Q2 2024 from 9.0% to the current 8.8% growth projection.
- Watch for further revisions as the earnings season progresses.
Future projections
- Q3 2024: Earnings growth rate forecasted at 8.2%
- 2024: Earnings growth rate forecasted at 17.6%
- Full year 2024: Expected growth at 11.3%
- 2025: Expected growth at 14.4%.
These projections may be adjusted based on Q2 results.
Double-digit growth potential
If current projections hold, 2024 and 2025 could mark the third time in 15 years that the S&P 500 reports two consecutive years of double-digit earnings growth.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
