S&P 500 Companies Expected to Report 23.3% Q2 Earnings Growth, Exceeding 10-Year Average

According to JP Morgan strategist Mislawf Mateika, reported by Yahoo Finance on July 13, S&P 500 companies are expected to report second-quarter earnings growth of 23.3% year-over-year, surpassing the 10-year average of 10.3% and the 5-year average of 16.4%, according to FactSet data.

If the 23.3% growth rate holds, it would mark the second consecutive quarter of earnings growth exceeding 20% and the seventh straight quarter of double-digit growth. Mateika attributed the upgrade in earnings estimates to fundamental improvements in economic activity during Q2, with particular strength in manufacturing recovery in Europe. Ten of 11 sectors are expected to report earnings growth, with energy, technology, and materials sectors leading performance.