The stellar second-quarter earnings reported by major large-cap companies have alleviated concerns regarding an economic slowdown and inflation. Many companies reported rising sales and record profit margins despite increasing costs. So, we think shares of Illumina (NASDAQ:ILMN), Regeneron (NASDAQ:REGN), and Innospec (NASDAQ:IOSP), which surpassed consensus EPS estimates in the last reported quarter, could be worth watching. Let's discuss.The second quarter of 2021 witnessed a significant jump in corporate earnings, offsetting concerns related to production and supply bottlenecks and decelerating economic growth. According to a survey conducted by the National Association of Business Economics (NABE), 66% of companies reported an increase in sales in the second quarter. In comparison, a mere 3% of companies reported lower sales on a sequential basis.
Furthermore, companies have been reporting record profit margins in the second quarter despite the impact of inflation. S&P 500 companies’ overall earnings for the second quarter are expected to grow 76% year-over-year, representing their best growth since 2009.
Corporate earnings reports for the second quarter have been great so far and are expected to remain favorable for investors. So, we think Illumina, Inc (ILMN), Regeneron Pharmaceuticals, Inc. (REGN), and Innospec Inc . (IOSP) could be worth adding to one’s watchlist because they surpassed earnings estimates this quarter and are expected to deliver strong performance in the coming quarters.