Financial results for this year’s second quarter are coming in quite strong. According to data from FactSet, with 75% of companies listed in the S&P 500 index having reported Q2 results, 78% reported better-than-expected earnings, and 59% of companies reported revenue that exceeded expectations. Companies that beat consensus forecasts by a wide margin have seen their share price rise 10% or more after their Q2 results.
FactSet data also shows that earnings growth for Q2 of this year is up an average of nearly 10%. That’s the best quarter of year-over-year profit growth since the fourth and final quarter of 2021, and is much better than the 8.9% earnings growth that had been anticipated on Wall Street. While signs of an economic slowdown might be emerging, there wasn’t much of an impact on corporate America during this year’s second quarter.
Here are three blue-chip stocks on the rise after strong Q2 earnings.
ExxonMobil (XOM)
ExxonMobil (NYSE:XOM) reported better-than-expected second-quarter financial results, along with only a few other oil companies. Owing to record production levels in Guyana and the Permian Basin of Texas, ExxonMobil was able to post Q2 EPS of $2.14, which beat the $2.01 forecast on Wall Street. Revenue of $93.06 billion topped consensus estimates that had called for $90.99 billion in sales.
The company said that the strong results and record production each got a lift from its recent $60 billion acquisition of Pioneer Natural Resources, which closed in May of this year. ExxonMobil said that its production grew 15% to 4.4 million barrels of crude oil per day during Q2, driven by record output in both Guyana and Texas. ExxonMobil also continues to reward shareholders, spending $4.30 billion on dividends and $5.20 billion on stock buybacks during Q2.
While most oil stocks are in the red for the year amid slumping crude prices and lower refining margins, XOM stock has gained 16.8% year-to-date.
Mastercard (MA)
Credit card giant Mastercard (NYSE:MA) also reported a strong Q2 print, besting Wall Street forecasts on the top and bottom lines as consumer spending holds up. The company announced EPS of $3.59, beating Wall Street’s forecast of $3.51. Revenue of $6.96 billion exceeded consensus estimates of $6.80 billion. Mastercard also reported that the number and value of transactions processed on its credit card platform rose 11% from a year ago.
The strong print was attributed to robust consumer spending and cross-border payment volume growth of 17%. On an earnings call, company executives said consumer spending continues to hold up despite signs that the U.S. economy is slowing. Spending on travel and dining out, as well as on experiences such as concerts, remains particularly strong. Looking ahead, Mastercard forecast net revenue growth for all of this year in the low-double-digits. MA stock is up 4.1% on the year and represents the strength in blue-chip stocks.
Procter & Gamble (PG)
Consumer goods company Procter & Gamble (NYSE:PG) actually reported mixed Q2 financial results. However, the company behind Tide laundry detergent and Gillette razor blades has gotten a post-earnings bump in its share price due to the fact that its sales volumes increased for the first time in more than two years during the quarter. A previous trend of declining sales volumes looks to have reversed course.
Procter & Gamble announced EPS of $1.40, which beat Wall Street estimates of $1.37. However, revenue in the quarter totaled $20.53 billion, which missed the $20.74 billion that was forecast among analysts. Sales were flat compared with a year ago. In recent years, price increases across brands that also include Pampers diapers led to declining sales volumes as consumers bought fewer products and sought out cheaper alternatives.
But now, consumers appear to be returning to Procter & Gamble’s products. In terms of guidance, the company forecasts earnings for the entire year in a range of $6.91 to $7.05. Procter & Gamble reiterated its previous revenue forecast of 2% to 4% growth for this year. PG stock has gained 16.9% so far this year and has earned a leading place among blue-chip stocks.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
