The Weekly Update 2/14/2025
Highest Earnings Ever!
The earnings per share for Corporate America are hitting their sixth straight quarter of positive earnings growth! Economists’ consensus earnings’ growth for the S&P 500 are at +12% for 2025!
Big Tech earnings, particularly the “magnificent seven”, are expected to continue to grow by +13% year of year (YoY).
That one tech company, that is like a fruit, just reported their quarterly earnings. They were…., well before I note them, remember there is a great deal of negative business news around the reduced iPhone sales…., maybe true, but that fruity company made $958,796 per minute – every single minute of the last quarter. Think about that for just a few. That is huge!
Total earnings for the 62 S&P 500 companies that have reported results so far are up a rather astounding +19.6% from the same period last year on +8.4% higher revenues, with 82.3% beating EPS estimates and 69.4% beating revenue estimates.
As I looked at the chart below from Zach’s Investment Research, I made a note to self – I have been in this chair for 44 years and I have never seen this level of earnings growth, because it has never happened before. This is not just positive this is “special”!
Do yourself a favor and don’t let the short-term, scary news cause you to sell your bigger financial future!
Instead focus on long-term trends like these earnings. This is what drives valuations higher, over time of course.
Five Year Money will do the trick! (Read it Here)
I am interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
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The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.