Sunday, June 16, 2024

S&P 500 profits up 5% in Q1, led by 41% growth in communication services -Oppenheimer

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Oppenheimer Asset Management presented data showing that S&P 500 firms delivered more than 5% profit growth, on average, in quarterly reports released in the last several weeks, led by growth in areas like communication services and consumer discretionary.

“With 93% (466 firms) of the companies in the S&P 500 index having reported Q1 results, earnings are exceeding expectations. Profits are up 5.3% overall on the back of 3.7% revenue growth,” the investment firm stated on Monday.

The financial institution went on to state that eight of the 11 S&P sectors have shown positive earnings growth, with six segments advancing up double-digit rates.

According to Oppenheimer Asset Management, these include communication services +41%, consumer discretionary +32%, utilities +31%, information technology +12%, financials +11% and real estate +11%.

Here is a chart provided by Oppenheimer:

Strong earnings figures have also provided support for the benchmark averages (SP500) (COMP:IND) (DJI) as they pushed up to new recent highs. Specifically, the Dow Jones ended Friday’s session at a record level of 40,003.59.

See how the above-mentioned sectors are trading over the course of 2024:

  • Communication Services (XLC) +13.7% YTD.
  • Consumer Discretionary (XLY) -0.1% YTD.
  • Utilities (XLU) +14.2% YTD.
  • Information Technology (XLK) +10.1% YTD.
  • Financials (XLF) +13% YTD.
  • Real Estate (XLRE) -3.2% YTD.

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