Stocks wobble with inflation data in focus

Companies in the S&P 500 (^GSPC) have reported what’s broadly been considered a solid Q1 earnings season for the index, with one key exception: drugmaker Bristol Myers Squibb (BMY).

Last month, the company reported a massive loss per share in the first quarter on charges related to a series of acquisitions and cut its profit forecast for the year.

With 92% of S&P companies done reporting, the index is pacing for 5.4% earnings growth compared to the year-ago quarter, which would be the largest year-over-year earnings growth for the index since the second quarter of 2022. Take out Bristol, and the pace jumps to 8.3%, according to FactSet senior earnings analyst John Butters.

Overall, the Health Care sector (XLV) has seen earnings decline by 25.4% from the same quarter a year ago, in line with Energy’s (XLE) decline for the worst performance in the S&P 500 this quarter.

When removing a few other companies from the sector, the S&P 500’s earnings growth would shoot even higher. Butters also ran the numbers for the index when excluding Pfizer (PFE) and Gilead Sciences (GILD). Gilead Sciences reported a loss per share of $1.32 in the most recent quarter, compared to earnings per share of $1.37 in the same quarter a year ago. Pfizer meanwhile reported earnings per share of $0.82, down from $1.23 in the same quarter a year ago.

When removing those two companies and Bristol Myers Squibb, the S&P 500 would be pacing for earnings growth of 9.7%, per Butters’ analysis.