Get ready, Wall Street. This could be a banner earnings season for the S&P 500, according to data from S&P Capital IQ.
The company forecasts second-quarter earnings will grow at least 6.2 percent on a year-over-year basis. The increase will boost S&P 500 operating earnings per share for the trailing 12 months to an all-time high $123.61 a share, topping the previous trailing 12-month high of $121.81, set after last quarter's results.
"History implies that the final tally will likely be even better than 6%, as actual EPS exceeded initial estimates in each of the last 21 quarters and have done so by an average of 3.6 percentage points," Sam Stovall, chief investment strategist at CFRA Research, said in a note Monday.
S&P Capital IQ expects growth to be led by energy, financials and information technology. Energy earnings are expected to grow by a massive 387 percent for the second quarter. But Stovall said the jump is more a reflection of the sector's poor performance during last year's second quarter.
"A year ago, energy generated EPS of $0.75 per share in Q2, the worst of all 11 sectors. In the current quarter, energy is projected to post EPS of $3.65 (thus the 387% increase), which, if realized, would vault Energy to eighth place out of 11 sectors," Stovall wrote. "An improvement to be sure, but the percentage growth masks a sector still struggling with a recovery."