Summer is here and with it the results of the second quarter. This time around, this earnings season may be more under the radar than usual as market sentiment focuses on the FED, inflation and recession odds.
In any case, these results will be important, not so much because of the growth in earnings, but because of the perspectives and guidance given by the CEOs.
The earnings growth of the S&P 500 is masked by the Energy Sector: its earnings are expected to grow by +215%. Excluding energy, the S&P 500 as a whole shows a reduction in earnings growth compared to the previous year, although with different forecasts depending on the sectors.
Earnings are revised downwards
Similar to Q1 2022, earnings growth has slowed substantially across most sectors.
Everything seems to indicate that we have left behind the buoyant growth expectations of last year and have moved on to a more recessive scenario, where the sectors favored by a late macro cycle have benefited due to the high demand in the economy, inflation and disruptions in production chains.