JPMorgan: Companies missing estimates are being penalized more than typical

Sam Boughedda

Fri, May 16, 2025, 5:20 AM 1 min read

Investing.com -- As the first-quarter net play nears completion, JPMorgan analysts accidental the market’s absorption to net results has been notably skewed, with underperforming companies facing steeper-than-usual penalties.

“Companies missing estimates are being penalized by much than typical, portion those beating estimates are being rewarded by little than average,” JPMorgan wrote successful its last Q1 net tracker.

They enactment that astir 90% of companies successful some the U.S. and Europe person reported results.

Despite that muted banal reaction, net show was solid. JPMorgan explained that successful the U.S., net per stock grew 12% year-over-year, with an 8% astonishment origin comparative to expectations.

In addition, they stated that successful Europe, EPS declined 2%, though that inactive marked a 4% surprise. Excluding the vigor sector, which weighed heavy connected some regions, U.S. EPS maturation roseate to 14%, and European maturation turned affirmative astatine 2%.

JPMorgan said that Communication Services, Healthcare, Discretionary, Tech, and Utilities led the U.S. net strength. In Europe, show improved to 5% maturation erstwhile some Energy and Autos were excluded.

“The dispersed betwixt Mag-7 and S&P 500 ex-Mag-7 EPS maturation has narrowed, [but] it is inactive robust, astatine +20% y/y,” the bank’s analysts said, referencing the concentrated spot among a fewer large-cap U.S. tech stocks.

Still, the outlook is said to stay cautious. “Corporate guidance for 2025 nett outlook is comparatively subdued, with the proportionality of companies raising EPS guidance down again this quarter,” JPMorgan said.

Related articles

JPMorgan: Companies missing estimates are being penalized much than typical

iPhone 17 to beryllium made successful India and China, not the U.S.- Wedbush’s Ives

Michael Burry turns bearish connected Nvidia and China