“The S&P 500 Index is on track for 12.9% year-over-year (YoY) growth in earnings-per-share (EPS) for Q1. This marks the seventh consecutive quarter of YoY profits acceleration and the second consecutive quarter of double-digit growth for the index. It’s a strong showing, but with Q1 in the rearview mirror focus has shifted to the dark clouds obscuring the road ahead. Q1 results may have been strengthened by a pull forward in demand ahead of tariff policy implementation. A closer look at reports suggests that companies are pausing plans or deferring decisions to avoid getting whipsawed by the shifting policy outlook. Estimates for future quarters have come down, and Q2 results are likely to be noisy as delays, supply chain disruptions and dampened demand start to filter into earnings.”
Morten W. Langer
