Doug Kennedy, President & CEO
Earnings reports are dominating investors focus. With slightly less than a third of S&P companies reporting, we would characterize the overall tone of earnings reports as acceptable. The blended earnings growth estimate for the second quarter is now a -3.5%, which is up slightly from a -5.2% comparison analysts expected going into the quarter. Revenue growth is basically flat with selective strength in consumer discretionary and health care stocks. After a fairly prolonged earnings recession, for the domestic equity market to continue to advance given current market price-to-earnings multiples, earnings growth needs to resume. Analyst estimates suggest earnings growth will restart in the third quarter. We have been somewhat encouraged with company commentaries and forecasts during quarterly analyst calls. An improvement in global eco-nomic growth is a vital component to enhance earnings growth going forward and ultimately driving equity markets.
PEAPACK-GLADSTONE BANK IS A HIGH-PERFORMING BOUTIQUE BANK, LEADERS IN WEALTH, LENDING AND DEPOSIT SOLUTIONS, KNOWN NATIONALLY FOR UNPARALLELED CLIENT SERVICE, INTEGRITY AND TRUST.