Post-it Manufacturer 3M Sticks Landing While Ford Tanks: Biggest Beats And Misses From Earnings Season So Far

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The U.S. market is in the thick of second-quarter earnings releases, with about half of the SPDR S&P 500 ETF Trust (NYSE: SPY) issuing quarterly reports thus far.

Here's all you need to know about companies' performances and how Wall Street has reacted.

Broad Market Data: S&P Global and Factset recapped the first half of earnings season in a report issued July 26.

Of the first 41% of S&P 500 companies that had reported earnings, 78% reported a positive earnings surprise and 60% surprised on revenue.

For the companies that have reported so far, the second quarter, year-over-year earnings growth rate for the S&P 500 is 9.8%. Still, the S&P 500 has a historically high forward PE ratio of 20.6.

Since the first quarter of 2024, net margins increased in the real estate, information technology, utilities and energy sectors. They decreased for financial, industrial, healthcare and consumer discretionary companies.

On an EPS basis, here's how individual sectors have fared so far:

  • 100% of utility companies beat expectations.
  • 95% of healthcare companies beat expectations.
  • 91% of materials companies beat expectations.
  • 78% of financial companies beat expectations.
  • 78% of industrial companies beat expectations.
  • 77% of consumer staples companies beat expectations.
  • 76% of information tech companies beat expectations.
  • 71% of consumer discretionary companies beat expectations.
  • 67% of real estate companies beat expectations.
  • 67% of communication services companies beat expectations.
  • 67% of energy companies beat expectations.
Note that the sector data is subject to change given that sectors often report at different times.

Biggest Beats and Misses: 2024's second quarter has had its fair share of success stories and stinkers.

  • The share price of 3M Co (NYSE: MMM) soared over 20% since it reported strong earnings on July 26. The Saint Paul, Minnesota-based company raised its annual outlook while its adjusted EPS rose from $1.39 to $1.93, beating consensus estimates of $1.68.
  • Pharmaceutical giant Bristol-Myers Squibb Co (NYSE: BMY) had a similarly impressive second quarter. The company reported an adjusted EPS of $2.07, beating the consensus of $1.63. It also had strong revenue numbers. Its share price is up nearly 9% since reporting.
  • Fellow American automaker Ford Motor Co (NYSE: F) reported adjusted EPS of $0.47, missing its $0.68 estimate, on July 24. Investors have been particularly concerned with Ford's struggles to advance its electric vehicle push. Its stock is down over 20% since its report.
  • Fellow Big 3 automaker Stellantis NV (NYSE: STLA) was similarly punished after its second-quarter earnings on July 25. Stellantis reported first-half 2024 net revenue of 85 billion euros, down 14% year-over-year, while adjusted EPS declined 35%. The Auburn Hills, Michigan-baed company has seen its share price decline over 14% since its report.
A Look Ahead: Many big names have yet to release earnings.

In a test of the technology industry's high expectations, Microsoft Corporation (NASDAQ: MSFT) and Advanced Micro Devices, Inc (NASDAQ: AMD) will report on Tuesday. Meta Platforms, Inc (NASDAQ: META) will report on Wednesday. Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN) are slated to report Thursday.

Energy giants Shell PLC (NYSE: SHEL), ConocoPhillips, Exxon Mobil Corp and Chevron Corp will report later in the week.