That’s the assessment from Credit Suisse strategists, led by chief U.S. equity strategist Jonathan Golub and senior equity strategist Patrick Palfrey.
Credit Suisse expects S&P 500 earnings to decline by 2.1% year-over-year, but earnings per share is expected to grow by 0.2%. Earnings per share accounts for corporate buybacks. Earnings and EPS aren’t interchangeable terms.
As of Wednesday, 15.3% of the S&P 500’s market cap released second quarter financial results and 81% of these companies have topped their profit estimates.
Assuming S&P 500 companies beat their earnings per share expectations by 2.8%, which was the average beat rate for second quarter earnings seasons from 2010-2017, this year’s second quarter earnings per share is actually set to grow by 2.3%, according to Credit Suisse.
After all, buybacks for S&P 500 companies could top $1 trillion in 2019, according to analysis released earlier this month from Bank of America Merrill Lynch. Buybacks topped $1 trillion in 2018, as well.
Here’s a quick recap of the big earnings reports so far:
PepsiCo (PEP): earnings and revenue beat
Delta Air Lines (DAL): earnings and revenue beat
JPMorgan Chase (JPM): earnings and revenue beat
Wells Fargo (WFC): earnings and revenue beat
Goldman Sachs (GS): earnings and revenue beat
Bank of America (BAC): earnings beat, revenue match
UnitedHealth (UNH): earnings beat, revenue match
Netflix (NFLX): earnings beat, revenue miss
Scott Gamm is a reporter at Yahoo Finance. Follow him on Twitter @ScottGamm.
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