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April will be a busy month for S&P 500 company earnings, with the reporting season beginning the week of April 13 and running through the end of the month.
Companies representing roughly 70% of the S&P 500’s market capitalization are set to report by the end of April. Analysts are more optimistic than usual, raising earnings-per-share estimates for the index and calling for double-digit growth.
FactSet’s John Butters said the outlook for first-quarter profits is brightening as analysts lift their earnings-per-share expectations for the S&P 500 and anticipate double-digit growth.
However, investors have not fully responded to the improved earnings outlook. Concern about the potential effects of a protracted war in Iran on the economy has weighed on sentiment.
Even if companies’ past results are solid, investors are likely to focus more on forward-looking guidance—along with executives’ comments about the potential impact of war—than on what businesses delivered in the recent past.
Recent examples illustrate the dynamic. Nike was penalized despite reporting better-than-expected earnings because its outlook was weak. Airline stocks have also declined after executives discussed the likely impact of higher fuel costs.
While the S&P 500 has fallen about 9% from its January highs, its forward price-to-earnings multiple has contracted from about 22 to roughly 19, according to Goldman Sachs Research. Some investors have described U.S. stocks as “extremely cheap.”
Goldman’s portfolio strategy research team said the upcoming earnings season will be a key source of information about the earnings outlook, but that it may also be a challenging environment for stock pickers.
In its report last month, the team noted that the macro volatility of the current backdrop suggests reported results may have a smaller than usual impact on share prices, citing the pattern seen during the Q1 2025 season.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…