With 88% of companies having reported, the earnings growth rate for firms composing the S&P 500 is 49.4%. This is double the estimate from March 31, 2021 of 23.8%. If the trend holds for the remaining 12% of firms who haven’t reported, it will mark the highest year-over-year growth rate since the first quarter of 2010. What makes this beat so impressive is analysts raised earnings expectations throughout the month of March. See the chart below for more details.
The four sectors contributing the most to the increase in earnings are the Financials, Information Technology, Communication Services and Consumer Discretionary segments. They represent 83% of the increase in earnings for the period.
This is great news for investors and represents further proof the economy is not just re-opening but doing so faster than expected.