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Q2 Earnings Season Past The Halfway Mark

The Q2 earnings season, which has crossed the half-way mark already, reconfirms the positive earnings picture that emerged as a result of the preceding reporting cycle.

The key positive aspects of this earnings season that we have been pointing out all long include broad-based growth, record earnings tally, an abundance of positive surprises and favorable trends on the revisions front. Plenty of reports are still to come – more than 1000 companies are on deck to come out with results this week, including 130 S&P 500 members – but the positive and reassuring view of corporate earnings that we have seen already will likely remain in place. Apple (AAPL - Free Report) , Pfizer (PFE - Free Report) , and Yum Brands (YUM - Free Report) are some of the major reports coming out this week.

Here are the four takeaways from the results that have come out already.

First, the earnings and revenue growth pace is steadily going up relative to pre-season expectations. Total Q2 earnings for the index are currently expected to be up +9.2% from the same period last year on +5.0% higher revenues.

Please note that the +9.2% growth rate is the blended growth rate; it combines the actual growth for the 286 S&P 500 members that have reported with estimates for the still-to-come 214 index members. At the start of the quarter, the expectation was for earnings growth of +7.9%, which came down as the quarter unfolded, reaching as low as +5.6% just ahead of the start of the reporting season.

Since plenty of results are still to come, the actual Q2 earnings growth could very well go...