S&P 500 Earnings Season Starts Strong as 83% of Early Reporters Beat Estimates
The third-quarter earnings season gained momentum this week as 20 out of 24 early reporting S&P 500 companies surpassed profit expectations. Overall, 23 reporting firms achieved year-over-year earnings growth, while 15 exceeded revenue forecasts, reflecting solid performance across the financial, healthcare, consumer, industrial, and real estate sectors.
Major healthcare and financial firms set early benchmarks for the quarter. Johnson & Johnson (NYSE:JNJ) delivered adjusted earnings per share of $2.59 on sales of $25.40 billion and raised its full-year outlook, though a $5.5 billion pre-tax talc charge impacted net results. Among major banks, JPMorgan Chase & Co. (NYSE:JPM) missed profit expectations at $5.57 per share due to an investment banking slowdown, while Bank of America Corp (NYSE:BAC) reported earnings of $1.08 per share amid a $1.2 billion regulatory fine. Citigroup Inc. (NYSE:C) topped forecasts with $2.85 per share and achieved its best third-quarter revenue in a decade.
Looking ahead, earnings activity will accelerate next week with reports from mega-cap technology and industrial companies. Investors will monitor announcements from Tesla (NASDAQ:TSLA), Meta Platforms (NASDAQ:META), Netflix (NASDAQ:NFLX), Lockheed Martin (NYSE:LMT), and Procter & Gamble (NYSE:PG).
Key points
- Out of 24 S&P 500 companies reporting this week, 20 beat quarterly profit estimates and 23 achieved year-over-year earnings growth.
- Fifteen of the 24 early reporting firms exceeded revenue forecasts for the quarter.
- Johnson & Johnson raised its full-year sales and earnings guidance despite facing a $5.5 billion pre-tax talc charge.
- Citigroup beat profit forecasts and recorded its highest third-quarter revenue in ten years at $23.8 billion.
- Major tech and industrial leaders including Tesla, Meta Platforms, and Lockheed Martin report earnings next week.
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How many S&P 500 companies beat earnings estimates this week?
Out of 24 S&P 500 companies reporting this week, 20 exceeded earnings expectations, representing an 83% beat rate, while 23 posted year-over-year profit growth.
Why did Johnson & Johnson stock drop after earnings?
Johnson & Johnson stock fell due to slowing MedTech growth of 2.5%, generic competition for Stelara, and a $5.5 billion pre-tax talc charge, despite beating third-quarter forecasts.
Which major companies are reporting earnings next week?
Companies scheduled to report next week include Tesla, Meta Platforms, Netflix, General Motors, Lockheed Martin, IBM, Procter & Gamble, and American Express.