Corporate America's earnings outlook after first-quarter reporting season was better than expected, according to one Wall Street firm.
Credit Suisse forecasts the S&P 500 will rise 10.2 percent by year-end 2018 from Friday's close, according to the firm's latest market strategy report.
"Virtually every equity investor knows that 1Q18 has been a stellar earnings season. What's more impressive is how strong the trend looks going forward," strategist Jonathan Golub said in a note to clients Tuesday.
The strategist noted first-quarter earnings growth for the S&P 500 came in at 25.6 percent versus the initial Wall Street estimate of 18.3 percent. He said the benefit from tax reform only contributed about 32 percent of the profit growth versus the 42 percent analysts projected.
As a result, Golub is more optimistic over corporate earnings this year and next year. He raised his S&P 500 earnings per share forecast to $158 from $155 for 2018 and increased the earnings per share estimate to $170 from $165 for 2019.
The "constructive earnings environment supports our 3000 target on the S&P 500," he said.