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An Illustrated Guide to Q2 Earnings Season

The early reports are in, and so far, it’s been a hot start to the Q2 earnings season. Nevertheless, we are only at the tip of the iceberg, as the big banks like JPMorgan JPM, Wells Fargo WFM, and Citigroup C are set to report this Friday, while the FANG tech giants and trendy chipmaker stocks are spread out over the next few weeks.

As we know, these earnings reports can have a significant impact on Wall Street. The new quarterly results will not only reveal how accurate our estimates were, but they will also provide us with a sense of the latest consumer trends and overall strength of the economy. What’s more, fresh company guidance and update earnings estimates will help direct our trading behavior as we push further into the second half of the year.

Note: The data in this article is pulled from our exclusive Earnings Trends report. This thorough and up-to-date report includes the latest actual results, estimates, and analysis from Sheraz Mian, an acknowledged earnings expert and manager of the Zacks equity research department.

Overall, the global markets are hoping to continue the momentum that started in the first quarter, a period that witnessed total earnings growth of 13.4%—the biggest pop in nearly two years. According to our latest data, total Q2 earnings are expected to grow about 5.8% year-over-year, and this growth is expected to come on the back of 4.6% higher revenues.

For a more detailed look at the latest earnings trends, including a peek at how our estimates have changed over time and what we expect in future quarters, check out our new Q2 earnings preview infographic—equipped with a handy calendar to keep track of the biggest earnings announcements:

It’s worth noting that, although Q2 earnings estimates have slumped over time, this is actually a trend that has manifested itself consistently over the past few years. In fact, the magnitude of these negative revisions actually compare favorably to previous quarters.

Furthermore, investors should note that a strong earnings growth pace is expected to continue throughout the remainder of 2017 and into 2018. While Q1 and Q2 growth rates are boosted by easier year-over-year comparisons, earnings in the upcoming periods look to keep adding to the growth that was recorded last year.

Earnings season is really just heating up, and the most important stretch for investors will be the week of July 24, when more than 190 companies are expected to report. Make sure to check back here for all of our exclusive coverage and commentary as earnings season progresses.

Finally, if you are interested in additional earnings analysis, make sure to check out this week’s Earnings Trends report. This thorough and up-to-date report includes the latest actual results, estimates, and analysis from Sheraz Mian, an acknowledged earnings expert and manager of the Zacks equity research department.

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