• By The Financial District

U.S. Company Profits Bigger Than Wall Street's Lofty Targets

Much stronger-than-expected profit reports from US companies in recent weeks have ratcheted up already high Wall Street forecasts on how second-quarter earnings growth will look versus last year.

Photo Insert: Recent profit reports from U.S. companies, which have been stronger-than-expected, are drumming up hopes for a fully recovered economy

Earnings are now expected to have climbed about 90% in the second quarter versus analysts' forecasts of 65.4% at the start of July, according to IBES data from Refinitiv, with results in so far from roughly 300 of the S&P 500 companies as of Monday morning, Caroline Valetkevitch reported for the Associated Press (AP).


Nearly 89% of the reports are beating analysts' second-quarter profit estimates - the highest percentage on record, based on Refinitiv data going back to 1994.


A gangbuster second quarter is expected to mark a peak for recent US earnings growth as companies recover from the depths of last year's pandemic-induced profit collapse.


"Except for a few disappointments here and there, everybody has had solid earnings. It has been a tremendous earnings season, but it was supposed to be," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

"It will be interesting when you start getting deeper into third and fourth quarters. The market might be anticipating a bit of a trip-up."


Third-quarter earnings are estimated to climb 29.6% from a year-ago quarter. Fourth-quarter earnings are seen gaining 21.2%, based on Refinitiv data.



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