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S&P 500 Companies Show EPS Growth Amid Tariff Warnings

4/22/2025

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Summary

Story summary

In Q1, 12% of S&P 500 companies achieved a 7.2% EPS growth, with 71% surpassing earnings expectations.
3M and General Mills expressed caution regarding future guidance due to tariff uncertainties.
3M reported a GAAP EPS of $2.04 but warned tariffs might reduce 2025 earnings by 40 cents per share.
The IMF downgraded global growth forecasts, citing trade tensions and tariff effects as key factors.

History

Historical Context

The recent caution from companies like 3M and General Mills regarding future earnings mirrors historical trade tensions, notably during the 1980s when U.S.-Japan trade disputes arose. These conflicts led to protective tariffs, echoing today's concerns about global tariffs impacting corporate profitability and economic growth forecasts.

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Story summary

In Q1, 12% of S&P 500 companies achieved a 7.2% EPS growth, with 71% surpassing earnings expectations.
3M and General Mills expressed caution regarding future guidance due to tariff uncertainties.
3M reported a GAAP EPS of $2.04 but warned tariffs might reduce 2025 earnings by 40 cents per share.
The IMF downgraded global growth forecasts, citing trade tensions and tariff effects as key factors.

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