What’s Up With Earnings?

Check out the accompanying pdf and chart collection. Executive Summary: Today, we examine the flight paths of S&P 500 companies’ revenues, earnings, and profit margins through Q2’s earnings season. … Forward revenues per share rose to a record high the week before last, and analysts project revenues growth more than doubling next year to nearly 5%. … Forward earnings rose to a record high last week; it does a good job of predicting the earnings outlook during economic expansions. … The forward profit margin has edged up since bottoming in March, after dropping from last year’s record high. … All things considered, we’re sticking with our upbeat earnings forecasts and S&P 500 price targets for now.