We are halfway through the second quarter earnings season, with 48% of companies reporting in the U.S., and earnings delivery is very solid, supported by the disappearance of COVID dislocations, accelerating activity momentum and favorable base effects. In addition, despite the already elevated projections we entered the quarter with, a record number of companies are beating both sales and EPS estimates.

The percentage of S&P500 companies beating earnings per share and sales estimates increased this quarter, to the highest level since 2009.

Combined EPS for the S&P500 Q2 is +72% y/y, up from +44% y/y at the beginning of the year, having risen 8% since the beginning of the quarter.

88% of the S&P500 companies reporting beat EPS estimates. EPS growth for these companies is +83% year-over-year, surprising positively at 18%. Materials, Discretionary and Financials are posting very strong EPS growth, while most of the remaining sectors are also experiencing double-digit growth. Meanwhile, revenue growth is coming in at +23% y-o-y, surprising positively at 5%. All sectors are experiencing positive revenue growth.

Finally, looking ahead to the coming quarters, it is encouraging that corporate guidance so far is solid. Of the companies that have provided updates to their fiscal year earnings guidance, 78% have made upward revisions.