Summer 2021 Snapshot of Expected Future S&P 500 Earnings

Every three months, we take a snapshot of the expectations for future earnings in the S&P 500 (Index: SPX) at approximately the midpoint of the current quarter, shortly after most U.S. firms have announced their previous quarter’s earnings.

The biggest change since our last update three months ago is that Standard and Poor’s latest forecast is projecting stronger earnings growth.

The more robust earnings growth can best be seen in the trailing year earnings per share projected for December 2021. Three months ago, S&P anticipated that figure would be $174.87 per share (shown in green), which is now expected to reach $186.09 per share (red).

If that outcome is realized, it would put the S&P 500′s trailing twelve month earnings per share ahead of the trajectory that S&P projected back in February 2020 (orange), before the onset of the coronavirus pandemic recession hammered corporate earnings in the U.S.

Reference

Silverblatt, Howard. Standard & Poor. S&P 500 Earnings and Estimates. [Excel Spreadsheet]. 12 August 2021. Accessed 12 August 2021.