BofA Forecasts S&P 500 Q2 EPS to Beat Consensus by 5%, Sees 28% YoY Growth

According to Bank of America (cited by Business Insider), the bank's U.S. equity strategy chief Savita Subramanian expects second-quarter S&P 500 earnings per share to reach $85.50, up 28% year-over-year and exceeding Wall Street consensus by 5% this week. Despite strong first-quarter results with 27% EPS growth, Subramanian noted that early reported earnings show no signs of momentum slowdown, with 83% of companies beating EPS expectations and 72% exceeding revenue forecasts.

Subramanian's team attributes the strength to both technology and energy sectors, with major tech companies' capital expenditures projected 40% above initial estimates. Notably, forward guidance ratios have reached near 2021 highs, with 1.4 times more companies raising guidance than lowering it, signaling continued optimism heading into the quarter.