The U.S. first-quarter earnings growth estimate has gained in recent days after mostly stronger-than-expected results, but disappointing forecasts from key names such as Meta Platforms META-Q have offset some of the optimism.
Year-over-year S&P 500 earnings growth for the first quarter of 2024 is now seen at 4.3 per cent, according to LSEG data on Thursday. That is up from 3.3 per cent the day before.
The latest estimate is based on results from 190 of the S&P 500 companies and forecasts for the rest, with about 78 per cent of reports beating analysts’ earnings expectations.
LSEG noted that the forecast has been impacted heavily by an adjustment for Bristol Myers Squibb because of a US$12-billion one-time charge related to its acquisition of Karuna Therapeutics.
Without that one-time item, S&P 500 earnings are expected to have risen 7.4 per cent year-over-year, based on LSEG estimates.
Stocks were down on Thursday, however, despite the improved outlook for quarterly earnings. Among the biggest drags, Meta Platforms shares plunged after the Facebook-parent late Wednesday forecast higher expenses and lighter-than-expected revenue.
Honeywell International early on Thursday reported results that beat Wall Street estimates, while General Motors also this week reported better-than-expected quarterly results.