ANOTHER IMPRESSIVE SHOW FROM CORPORATE AMERICA
John Lynch Chief Investment Strategist, LPL Financial | Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
Second quarter earnings season was outstanding by many measures. The numbers were strong even without the boost from the new tax law, while guidance was generally positive despite tariffs and trade policy uncertainty. In this week’s commentary, we recap an outstanding second quarter earnings season and highlight three key takeaways.
BY THE NUMBERS
We expected another strong earnings season for the second quarter, and we got it. Growth was again very impressive, with S&P 500 Index earnings growing 25% year over year, nearly matching the 26% growth rate from the quarter before. Even when excluding the impact of the new tax law (estimated at 6–7%), earnings growth came in at 18–19%, which is still outstanding...