Earnings Growth
S&P 500 Earnings Waterfall 2Q 2023
This month’s Refresh continues our practice of summarizing the latest earnings season by evaluating the composite results of the S&P 500 member companies. Many analysts address sales and net income, but rarely speak to the middle lines of the income statement.
S&P 500 Earnings Waterfall 1Q 2023
This note continues our practice of summarizing the latest earnings season by analyzing the composite results of the S&P 500 member companies, as if the SPY ETF represented a share in a single company with 500 subsidiaries.
The Growth Style’s Twin Peaks
_0.jpg?fit=fillmax&w=222&bg=FFFFFF)
The strong market rebound in the second quarter lifted the relative return of Growth vs. Value to an all-time high by the end of June. Chart 1 reveals that the cumulative S&P 500 Growth / Value return spread hit a new record last month, surpassing the previous high reached at the end of the Tech bubble in June 2000.
First Quarter Earnings Waterfall
What a difference a year makes! In early 2018 we were celebrating 20% earnings growth, driven by a strong economy and the massive corporate tax cut. Sales were rising at a double-digit rate and the tax burden was shrinking dramatically, setting up one of the best earnings years in history.
current issue
