2Q earnings scorecard

The 2Q corporate earnings season is almost over and U.S. companies are still showing a strong scorecard. Revenues have grown 6.2% YoY, which paired with some financial engineering, have yielded a 13.2% growth in earnings. Communications services and Technology have been the best sectors by far, and are mostly responsible for the growth in the Index, running unprecedented concentration levels in the Tech sector. Earnings continue to be “influenced” by buybacks, where corporations keep buying back their stock at an aggressive pace, despite the fact their valuations are, in most instances, at record high levels. For instance, Apple has repurchased $700bn of stock, which is almost a fourth of its current valuation. On the flip side, earnings seem to be unaffected by tariffs, even though the word itself continues to appear consistently in every earnings call. Uncertainty continues to be high, but U.S. companies seem to have been able to navigate the environment with solid results on average, but the differences among sectors and businesses are reflected in that indices: the Nasdaq is up almost 11% for the year, while the Dow is up 3.7%.

Want to know more? You can find all our posts at https://www.myfundamental.net/insights

#iamfundamental #soyfundamental #wealthmanagement #familyoffice #financialadvisor #financialplanning #policymistake #ratecut #stagflation