Just wanted to update everyone after my latest blog post about how this earnings cycle has changed the trajectory for markets.
Compared with other economies around the world the US remains the one to catch with these trends:
Headline Numbers (FactSet)
• Earnings growth (YoY): 50.4% — strongest quarterly growth since Q2 2021 (+91.6%).
This is more than double the ~23% expected at the end of June.
• Revenue growth (YoY): ~15.0% — highest since Q4 2021.
• Net profit margin: 16.9% — a record high since FactSet began tracking in 2009 (previous high was 14.8% in the prior quarter).
• Beat rate: 86% of companies beat EPS estimates (above the 5-year average of ~78%). Aggregate earnings are running +29.2% above estimates (far above the ~7% 5-year average).
• Revenue beats: ~76% of companies.
Momentum (Earnings Edition)
