The calendar Q1 2025 earnings reporting cycle is about to shift into high gear, with reports from CQ4 coming from nearly 100% of the S&P 500 (NYSEARCA: SPY). The cycle begins on January 15th when JPMorgan Chase & Company (NYSE: JPM) issues its report, which will likely be strong. The financials are more important than ever this quarter because the sector is expected to lead with growth of over 40%, and the estimates are rising.
The most significant allocations in the S&P 500 Financial Sector SPDR (NYSEARCA: XLF), including JPMorgan, Berkshire Hathaway (NYSE: BRK.A), Visa (NYSE: V), and Mastercard (NYSE: MA) are all expected to post high-single-digit to low-double-digit gains, and the smaller companies will grow faster. The sector is also likely to bolster its collective balance sheet, grow its capital position, and remain on track for robust capital returns in 2025.
