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LIVE MARKETS-Actual US EPS growth so far for Q1 reports below average

ReutersMar 26, 2025 6:13 PM
  • All three major indexes decline; Nasdaq slides ~2%
  • Tech weakest S&P 500 sector; Staples lead gainers
  • Dollar up; crude gains; gold ~flat; bitcoin off >1%
  • US 10-Year Treasury yield edges up to ~4.33%

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ACTUAL U.S. EPS GROWTH SO FAR FOR Q1 REPORTS BELOW AVERAGE

Actual EPS growth for the 17 S&P 500 .SPX companies that have reported on the first-quarter so far is at 3.26%, with 59% of reports beating analysts' expectations, according to Nick Raich, CEO of The Earnings Scout, an independent research firm.

That 3.26% is well below the average gain of 11.82% for the past three years for those same companies at this point in a reporting period, and down from 5.21% for those companies for the fourth-quarter earnings season, his data shows.

While there is no evidence that a U.S. recession is imminent, "what is evident is that actual EPS growth is slowing," Raich writes.

"While most investors agree tariffs will hurt earnings, the debate lies in their long-term impact," he notes.

So far, 59% of the reports are beating analyst earnings expectations compared with the three-year average beat rate of 83%, his data showed.

(Caroline Valetkevitch)

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