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S&P 500 earnings jump 5.5% YOY in Q1 2024 as most sectors report gains

First-quarter S&P 500 earnings rose nearly 6% year over year as the majority of the index's constituent sectors posted growth.

Consumer discretionary companies reported the largest gain among S&P 500 sectors at 44.2%, according to S&P Global Market Intelligence data as of July 3.

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Healthcare, materials, real estate and energy companies all reported declining first-quarter earnings per share compared with a year earlier. Healthcare fared the worst with a 25.2% drop.

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Large, midsize S&P 500 companies

Among S&P 500 companies valued above $100 billion, Micron Technology Inc. reported the greatest earnings beat against analysts' estimates. The memory and storage-products maker reported normalized EPS of 42 cents for the fiscal quarter ended Feb. 29, well ahead of estimates of a loss for the period. Micron reported more than $2 billion in revenue growth during the quarter compared with the same period a year earlier, swinging to a profit after losses in earlier periods.

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Rental platform Airbnb Inc. also reported earnings well ahead of expectations, with its quarterly EPS of 41 cents nearly double the estimate for the period. The company reported double-digit revenue growth as the value of bookings also rose more than 12% year over year.

For midsize companies in the S&P 500 — those valued between $30 billion and $100 billion — The Estée Lauder Cos. Inc.'s quarterly results beat analysts' expectations by the widest margin as its revenue grew by 5%, which executives credited in part to growth in its Europe, Middle East and Africa region and stronger sales in Asia travel retail.

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Smaller companies

Pinnacle West Capital Corp. reported the largest earnings beat among S&P 500 companies valued below $30 billion. Analysts expected a loss of less than 1 cent per share, though the electric company posted a surprise profit of 15 cents per share.

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Live Nation Entertainment Inc. and Expedia Group Inc. also posted positive earnings against analyst predictions of losses, each beating expectations by some of the widest margins among smaller S&P 500 companies.

Biggest beats, misses

Micron, Pinnacle West, Live Nation and Expedia were among the top five S&P 500 companies to post the greatest earnings beat against expectations, according to Market Intelligence data. Western Digital Corp. rounded out the group, with its quarterly normalized EPS of 63 cents more than 300% higher than expectations of 15 cents.

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Gaming company Take-Two Interactive Software Inc., meanwhile, reported the widest earnings miss, with a surprise normalized loss per share of 59 cents versus expectations of a profit of 8 cents per share. The company reported declining revenue compared with the same quarter a year earlier as consumer spending decreased.