This week marks a significant event in the Q2 earnings season, with over 400 companies scheduled to report results, including 109 members of the S&P 500. As of July 21, 2023, 62 S&P 500 companies, accounting for 12.4% of the index, reported earnings growth of +9.3% year-over-year and revenue growth of +5.8%. Notably, 82.3% of these companies exceeded EPS estimates, maintaining a trend above historical averages.
Alphabet Inc. is set to announce its earnings on July 23, 2023, with expected earnings of $2.14 per share and revenues of $79.3 billion, reflecting year-over-year increases of +13.2% and +11.1%. Meanwhile, Tesla is also reporting the same day, with projections of $0.40 per share in earnings and $22.5 billion in revenues, down -23.1% and -11.9%, respectively, compared to the previous year.
Expectations for Q2 earnings indicate a total S&P 500 growth of +6% with revenues up +4.3%. The Mag 7 companies expect an even higher earnings increase of +11.7% and revenue growth of +11.3% for the quarter.
