According to FactSet, while around 75% of S&P 500 companies typically beat EPS estimates, only around 60% top revenue expectations. This gap suggests that many earnings beats are driven by cost controls, share buybacks, and operational efficiencies rather than exceptional business growth. As a result, companies delivering very large EPS surprises remain a relatively small subset of all earnings reporters.
Research by LSEG has shown that analyst earnings forecasts become increasingly accurate as reporting dates approach. Because consensus estimates incorporate the latest company guidance and market information, most earnings surprises are relatively modest. Large positive surprises therefore tend to occur only when companies significantly outperform expectations or benefit from unforeseen factors.
On July 31, 61 companies posted their second-quarter earnings. Nine notably stood out.
9 Stocks With Better-Than-Expected Earnings:
9. Werewolf Therapeutics, Inc. (NASDAQ:HOWL)
Werewolf Therapeutics, Inc. (NASDAQ:HOWL) blew past consensus estimates in the second quarter, posting EPS of $0.08 and topping expectations by $0.40. Analysts had expected losses of $0.32.
8. Arbor Realty Trust, Inc. (NYSE:ABR)
Arbor Realty Trust, Inc. (NYSE:ABR) registered $0.10 EPS, topping estimates by $0.07.
7. Perella Weinberg Partners (NASDAQ:PWP)
Perella Weinberg Partners (NASDAQ:PWP) posted EPS of $0.20 for the second quarter, topping expectations by $0.14.
6. Carter’s, Inc. (NYSE:CRI)
Carter’s, Inc. (NYSE:CRI) topped EPS targets by $0.20, finishing at $0.26.
5. Newell Brands Inc. (NASDAQ:NWL)
Newell Brands Inc. (NASDAQ:NWL) blew past analyst estimates on EPS in the second quarter, ending at $0.42, shattering predictions by $0.22.
4. Moog Inc. (NYSE:MOG-A)
Moog Inc. (NYSE:MOG-A) exceeded EPS consensus in the second quarter results, posting $4.74, beating analyst predictions by $2.08.
3. Magna International Inc. (NYSE:MGA)
Magna International Inc. (NYSE:MGA) surprised Wall Street with earnings results on July 29, blowing past EPS estimates by $0.33 on EPS of $1.86.
2. LyondellBasell Industries N.V. (NYSE:LYB)
LyondellBasell Industries N.V. (NYSE:LYB) blew past consensus estimates in the second quarter, posting EPS of $4.30, topping expectations by $0.88.
1. nVent Electric plc (NYSE:NVT)
nVent Electric plc (NYSE:NVT) posted EPS of $1.45 in Q2, beating expectations by $0.29.
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