Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Wells Fargo
For Immediate Release
Chicago, IL – June 26, 2025 – Zacks Director of Research Sheraz Mian says, "While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway."
A Closer Look at Q2 Earnings: What Can Investors Expect?
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Total S&P 500 earnings for the June quarter are expected to be up +4.9% from the same period last year on +3.9% higher revenues. While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway.
Q2 earnings estimates for 13 of the 16 Zacks sectors have come down since the quarter got underway, with Aerospace, Utilities, and Consumer Discretionary as the only sectors whose estimates have modestly moved higher since the start of April.
Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway. The quarter started with significant pressure on Tech sector estimates, but the negative revisions trend notably stabilized in the subsequent weeks.
In terms of year-over-year growth, three sectors are expected to enjoy double-digit earnings growth in Q2: Aerospace (+15.1%), Tech (+11.8%), and Consumer Discretionary (+105.6%). On the negative side, seven sectors are expected to earn less in Q2 relative to the year-earlier period, with double-digit declines at the Energy (-24.9%), Construction (-14.4%), and Autos (-30.2%) sectors.
The Q2 earnings season will really get going once JPMorgan JPM, Bank of America BAC and Wells Fargo WFC kick-off the June-quarter reporting cycle for the Finance sector.
Making Sense of Earnings Expectations for 2025 Q2 and Beyond
The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2 nd tariff announcements. While the onset of the announced levies was eventually delayed by three months, the issue has understandably weighed heavily on estimates for the current and upcoming quarters, particularly in the first few weeks following the April 2 nd announcement.
The expectation at present is for Q2 earnings for the S&P 500 index to increase by +4.9% from the same period last year on +3.9% higher revenues.
While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters.
Since the start of the quarter, estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sectors experiencing favorable revisions in this period are Aerospace, Utilities, and Consumer Discretionary.
Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began.
Tech sector earnings are expected to be up +11.8% in Q2 on +10.8% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks.
This stabilizing turn in the Tech sector's revisions trend can be seen in expectations for full-year 2025 as well.
The two charts above show that estimates for the Tech sector have stabilized and are no longer under the type of downward pressure experienced earlier in the quarter. The Tech sector is much more than just any other sector, as it alone accounts for almost a third of all S&P 500 earnings.
The Earnings Big Picture
While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage.
Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we gain visibility on the tariffs question.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bank of America Corporation (BAC): Free Stock Analysis Report
Wells Fargo & Company (WFC): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
37 minutes ago
- National Post
Sorenson Capital Announces $150M Ventures Fund III to Maintain Focus on Cybersecurity and B2B Software Investments
Article content PALO ALTO, Calif. — Sorenson Capital, a leading venture capital firm with offices in Palo Alto and Salt Lake City, today announced the launch of its third early-stage fund, Ventures III, with $150 million in capital commitments. This new fund underscores the firm's dedication to its focused investment strategy in cybersecurity and B2B software companies ranging from pre-revenue up to $5 million in ARR. Article content Ventures III maintains a comparable size to its predecessor, Ventures II, which was a $150 million fund, reflecting the firm's commitment to a consistent and focused approach. Specifically, by maintaining consistency in sector focus and fund size, Sorenson Capital ensures a collaborative style with each portfolio company whereby the team works closely with founders to execute go-to-market strategies, develop product offerings, source their first customers, and provide informed perspectives on industry trends. Article content With over two decades of experience in cybersecurity and B2B software, the firm brings extensive market knowledge and strategic insights to its investments, having invested in companies including BambooHR, CloudKnox (acquired by Microsoft), Fastly (IPO), Harness, Planera, Socure, and Talon Security (acquired by Palo Alto Networks). Article content Rob Rueckert, Managing Director at Sorenson Capital, stated, 'Our deliberate fund size is about maximizing our impact – for our LPs and our founders. We've seen firsthand that bigger doesn't always mean better in this business. Our consistent focus means we remain deeply involved with each of our investments from day one through exit.' Article content The firm remains committed to partnering with founders who are innovating across AI, B2B Software, Cybersecurity, and DevOps & Infrastructure, helping them through the entire company lifecycle. Sorenson Capital is actively investing out of Ventures III, with 9 companies already in the fund, including Andromeda Security, Bureau, Jump, and SmartSuite. These companies are tackling key challenges, including safeguarding against human and non-human identity breaches, preventing global identity fraud, delivering tailored agentic AI solutions for specific industries, and streamlining workflow management. Article content 'At Sorenson Capital, we're dedicated to helping our portfolio companies build scalable and repeatable go-to-market playbooks,' said Ken Elefant, Managing Director at Sorenson Capital. 'Our approach goes beyond just providing capital; we roll up our sleeves and work closely with founders to identify urgent pain points, define customer profiles, and develop products that solve real business problems. As we move forward, we'll continue to leverage our extensive networks and decades of experience in enterprise software and cybersecurity to provide a business development roadmap for our companies.' Article content About Sorenson Capital Article content Sorenson Capital is a venture capital firm that invests in product-first early and growth-stage companies in the cybersecurity and B2B software categories. Sorenson Capital has $1.6 billion in assets under management and its investments in product leaders include BambooHR, CloudKnox (acquired by Microsoft), Fastly (IPO), Harness, Planera, Socure, and Talon Security (acquired by Palo Alto Networks). The firm supports entrepreneurs through every stage of their journey to accelerate revenue growth and further their product leadership positions. For more information, visit: The portfolio companies listed above represent a subset of all investments made by Sorenson Capital. It should not be assumed that future portfolio investments will be profitable or equal to the success of the companies in this list. A complete list of Sorenson Capital investments is available upon request. The assets under management listed above are as of December 31, 2024. Article content Article content Article content Contacts Article content Media Contact Article content Article content Article content Article content
Globe and Mail
38 minutes ago
- Globe and Mail
US economy shrank 0.5% in the first quarter, worse than earlier estimates had revealed
WASHINGTON (AP) — The U.S. economy shrank at a 0.5% annual pace from January through March as President Donald Trump's trade wars disrupted business, the Commerce Department reported Thursday in an unexpected deterioration of earlier estimates. First-quarter growth was weighed down by a surge of imports as U.S. companies, and households, rushed to buy foreign goods before Trump could impose tariffs on them. The Commerce Department previously estimated that the economy fell 0.2% in the first quarter. Economists had forecast no change in the department's third and final estimate. The January-March drop in gross domestic product — the nation's output of goods and services — reversed a 2.4% increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9%, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points. Consumer spending also slowed sharply, expanding just 0.5%, down from a robust 4% in the fourth-quarter of last year. It is a significant downgrade from the Commerce Department's previous estimate. Consumers have turned jittery since Trump started plastering big taxes on imports, anticipating that the tariffs will impact their finances directly. And the Conference Board reported this week that Americans' view of the U.S. economy worsened in June, resuming a downward slide that had dragged consumer confidence in April to its lowest level since the COVID-19 pandemic five years ago. The Conference Board said Tuesday that its consumer confidence index slid to 93 in June, down 5.4 points from 98.4 last month. A measure of Americans' short-term expectations for their income, business conditions and the job market fell 4.6 points to 69. That's well below 80, the marker that can signal a recession ahead. Former Federal Reserve economist Claudia Sahm said 'the downward revision to consumer spending today is a potential red flag.'' Sahm, now chief economist at New Century Advisors, noted that Commerce downgraded spending on recreation services and foreign travel — which could have reflect 'great consumer pessimism and uncertainty.'' A category within the GDP data that measures the economy's underlying strength rose at a 1.9% annual rate from January through March. It's a decent number, but down from 2.9% in the fourth quarter of 2024 and from the Commerce Department's previous estimate of 2.5% January-March growth. This category includes consumer spending and private investment but excludes volatile items like exports, inventories and government spending. And federal government spending fell at a 4.6% annual pace, the biggest drop since 2022. In another sign that Trump's policies are disrupting trade, Trade deficits reduce GDP. But that's just a matter of mathematics. GDP is supposed to count only what's produced domestically, not stuff that comes in from abroad. So imports — which show up in the GDP report as consumer spending or business investment — have to be subtracted out to keep them from artificially inflating domestic production. The first-quarter import influx likely won't be repeated in the April-June quarter and therefore shouldn't weigh on GDP. In fact, economists expect second-quarter growth to bounce back to 3% in the second quarter, according to a survey of forecasters by the data firm FactSet. The first look at April-June GDP growth is due July 30.
Globe and Mail
an hour ago
- Globe and Mail
Jobless Claims Decreased More Than Expected
Pre-market futures are up this morning, though by slimmer margins upon a bevy of economic data hitting the tape. The Nasdaq, nearing all-time highs as of Wednesday's close (and getting there on the Nasdaq 100) is down 40 points to 74 at this hour. The Dow went from 105 to 90 points and the S&P 500 has remained constant at 15 points. Weekly Jobless Claims Notably Mixed While Initial Jobless Claims have come down -9K to 236K from a slightly upwardly revised 245K the prior week — which is good: the lowest print since mid-May, in fact — it's Continuing Claims that carries the bigger story this morning. Longer-term jobless claims reached 1.974 million two weeks ago (Continuing Claims are reported a week in arrears from new claims), above 1.9 million for the fifth-straight week and the highest level we've seen since mid-November of 2021. For the first part of 2025, we were ping-ponging around that 1.9 million level, but now jobless claims on the longer-term side are clearly trying to break out. And, while 1.9 million is merely a psychological touch-point, once Continuing Claims reaches 2 million per week, expect a change in the narrative — including from the Fed — on our steady and secure labor market. Pre-PCE Data Comes Down Demonstrably The second revision of Q1 GDP usually doesn't waver too much from estimates, but in this case, -0.5% is more than twice as low as the first revision to -0.2% (-0.3% was the original Q1 GDP print). This is the weakest quarter since Q1 2022. We see Consumption cut by more than half from the previous read: from +1.2% last time to +0.5% this morning. The PCE Index and core both tick up 10 basis points (bps) to +3.8% and +3.5%, respectively. The full Personal Consumption Expenditures (PCE) report comes out Friday morning. Durable Goods, Trade and Inventories Reflect Tariff Culture The preliminary May headline for Durable Goods Orders blasted off into a new orbit: +16.4% more than doubles the +7% anticipated, led by a huge +234% change in non-defense aircraft. Stripping out airlines, airplanes and transportation, we see a still-strong +0.5% — the highest print since September of last year. Officially, non-defense, ex-aircraft came in at +1.7%, and that's the largest tally we've seen since January. The Advanced U.S. Trade Balance for May reached -$96.6 billion, sinking deeper from the upwardly revised -$87.0 billion. We're thankfully off the early 2025 levels that hit record lows in March of -$162 billion, but still pretty deep in the hole. Imports remained fairly steady but Exports fell -5.2% for the month. Advanced Retail Inventories in May jumped to +0.3% month over month and +3.2% year over year. Advanced Wholesale Inventories, on the other hand, sank -0.3% for the month and +1.4% from the year-ago number. All of this data can be seen through the prism of tariff realities — both those already levied and those anticipated, which led to much higher trading volume ahead of reciprocal tariffs, which remain murky looking ahead. What to Expect from Today's Stock Market Once the regular trading day gets going, Pending Home Sales for May will come out. These are expected to improve to -0.5% from -6.3% the prior month. This metric follows Wednesday's New Home Sales tallies, which came way down to 623K in May from an estimate of 695K and -99K month over month. Existing Home Sales, released on Monday, outperformed expectations: 4.03 million versus 3.95 million projected. While Q2 earnings season is unofficially a couple weeks away, Nike (NKE) posts fiscal Q4 results after today's closing bell. This is a good representative of an American manufacturer with deep ties to Asia and this year's new tariff realities. As such, Nike is expected to bring in earnings down -88% year over year and -15% on revenues. Yet the company has a 7-straight quarterly earnings beat, with a trailing 4-quarter average of +42.5%. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up NIKE, Inc. (NKE): Free Stock Analysis Report
