US companies are experiencing one of their best earnings seasons in 3 years

According to Bloomberg analysis, with 75% of the companies in the S&P 500 having reported.yo date, quarterly EPS is on track to jump 12.5% vs 7.3% estimate before the season kicked off.

That’s well above an average 5.5% increase posted since the first quarter of 2022.

On the other hand, Stocks beating estimates have underperformed the S&P 500 by an average of 0.1% on the day of reporting results — one of the worst reactions in four years. And companies falling short of expectations are being punished, with their shares trailing the benchmark by an average 3.2%.