Viridian Chart Of The Week: Do Analyst’s Q2 Estimates Reveal An Expectation Of A Slowdown?

The graph shows the calculated percentage growth rates of EBITDA, arranged in increasing order of sequential quarterly growth rates (orange bars.) The blue bars show year-over-year growth rates, and the green bars show estimated full-year 2024 EBITDA vs actual 2023 EBITDA. 

Half of the companies on the chart have projected negative sequential growth in EBITDA for Q2: 24. This is surprising because Q2 is generally a seasonally stronger quarter, and in the previous three years, an average of nearly 80% of the companies on the chart have had higher EBITDA in Q2 compared to Q1. 

Analysts are projecting a 10.2% y/o/y EBITDA growth for Q2 and full-year 2024 EBITDA growth of 9.8% compared to 2023. However, 1st half of 2024 results, including the Q2 estimates, are 14.2% higher …

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