While the S&P 500 index hit record highs this week, in the wake of the U.S. Federal Reserve Board’s first rate cut in years, the companies in the index have also reported strong earnings growth, according to S&P Global Market Intelligence.
The rating agency reported that combined earnings per share (EPS) for S&P 500 companies were up 12.9% in the second quarter.
The robust rise in earnings came as most of the index’s constituent sectors reported earnings growth, S&P said, noting that all of the index’s sectors generated higher earnings, except for the industrials, materials and real estate sectors.
The communication services sector reported the largest EPS growth, the agency said.
Among the largest S&P 500 companies, defined as companies with market caps of at least US$100 billion, the logistics-focused REIT, Prologis Inc., beat consensus estimates by the widest margin, as it topped consensus forecasts by 54.2%, S&P said.
Various other companies also recorded large earnings beats, it noted — including cruise operator Carnival Corp. & PLC, which reported 11 cents in EPS, surprising analysts that expected a two cent loss from the firm, as it “took advantage of resurgent cruise bookings and higher prices.”
Conversely, media giant Warner Bros. Discovery Inc. suffered the largest earnings disappointment, S&P said, as it recorded an 18 cent per share loss, against expectations for slightly positive earnings.