S&P 500 companies' quarterly earnings growth decelerated compared with figures from a week ago, but remained well ahead of expectations, Oppenheimer Asset Management's data showed Monday.
Some 28% of companies in the benchmark equity index have reported results in the latest cycle, with earnings up about 25% from a year earlier and revenue growing 10%. Last week's report by the brokerage showed profit growth of 32% and sales increase of 13%, based on financials reported by 9% of the index constituents.
Ahead of the reporting season, FactSet put expected earnings growth at 12.6% from a year earlier, according to Oppenheimer.
"The quarter appears to be off to a strong start," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said, noting that earnings growth reported by 79% of the firms that have released their quarterly results exceeded analyst estimates.
Among sectors, materials and technology outperformed in terms of earnings, with profit roughly doubling year over year. Tech led the chart for revenue growth, with a nearly 30% increase, followed by real estate's 14% jump.
This week, a busier earnings calendar has 179 S&P companies releasing their quarterly financials, according to Oppenheimer. Among the big-cap companies reporting this week are five of the so-called Magnificent 7 stocks; Alphabet (GOOG, GOOGL), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN) and Meta Platforms (META).
Visa (V), Coca-Cola (KO), T-Mobile US (TMUS), and Eli Lilly (LLY) also report this week.
On Friday, the S&P 500 and the Nasdaq Composite hit all-time peaks as tech stocks rallied, ahead of a second round of US-Iran peace talks. The two sides, however, didn't have direct negotiations in Pakistan over the weekend.
"Resolution to the conflict in our view persists as a potential negative overhang to market performance on a day-to-day basis tied to news flows from the front, developments in negotiations taking place and supply chain disruptions that carry inflation risks," Stoltzfus said. "That said, stocks are showing thus far an appreciation for fundamentals that matter to revenue and profit growth."
Price: $349.73, Change: $+7.41, Percent Change: +2.16%