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- Macro Monday: Earnings Growth About To Peak?
Macro Monday: Earnings Growth About To Peak?
The Macro Institute's Weekly Economic Primer
The Macro Institute
May 13, 2024
U.S. corporations are just about done reporting their first quarter earnings. Like most earnings seasons, beats were far more common than misses. Companies that failed to meet expectations or that provided weaker guidance for future quarters saw their stock prices hit as a result. Level 1 of the M2 SD curriculum emphasizes that stock prices – valuations, in particular – lead analysts’ earnings estimates by about three months. The S&P 500 peaked back on March 31, so are we due for some weaker revisions in the coming months? Consensus earnings estimates for the next year are about 12% higher than they were at this time last year. That rate is unchanged from the end of Q1, indicating that earnings reports have not provided any additional momentum, particularly as the Mag7 have surrendered their leadership position for now.
The Macro Week In Review
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