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S&P 500 Companies' Earnings Grow 28% as Reporting Season Approaches End, Oppenheimer Says

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S&P 500 Companies' Earnings Grow 28% as Reporting Season Approaches End, Oppenheimer Says

S&P 500 companies' quarterly earnings growth held steady at nearly 28% compared with financials reported up until a week ago, putting the index on track to close out the most recent cycle well above estimates, Oppenheimer Asset Management said Monday.

Some 97% of companies in the benchmark equity index have reported results this season, with earnings up 27.7% from a year earlier. Last week's report by the brokerage showed profit growth at 27.5%, based on figures reported by 95% of the index constituents.

Heading into the cycle, FactSet put expected earnings growth at 12.6% year over year, Oppenheimer said.

"With May in the rearview mirror, two thirds of the second quarter is done," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a note to clients. "Traders and investors will now navigate the six-week road ahead to S&P 500 (second-quarter) earnings season which won't really get underway until the big banks report results on July 14."

Among sectors, technology and communication services outperformed in terms of earnings growth, with profits up by 50% and nearly 47% from a year earlier, respectively. Healthcare was the sole decliner.

All 11 S&P sectors saw sales growth on an annual basis, led by technology, utilities and communication services, according to Oppenheimer's report.

Hewlett Packard (HPE), Palo Alto Networks (PANW), Broadcom (AVGO) and CrowdStrike (CRWD) are slated to report quarterly results this week.

Markets continue to track the latest developments around the Middle East conflict. Iran suspended talks with the US in retaliation to Israel's military action in Lebanon, CNBC reported Monday, citing Iranian state-affiliated outlet Tasnim.

"We do expect some kind of resolution to be arrived at because of the economic and geopolitical pressures put on both sides of the negotiation table tied to the collateral damage caused to economies around the world as a result of the current conflict," Stoltzfus said.

Price: $45.50, Change: $+2.46, Percent Change: +5.72%

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