Corporate earnings season will get under way again in just a few weeks. What should investors expect?
If the most recent earnings season was any indication, there'll be chatter about inflation. A lot of it, in fact.
A total of 197 companies in the S&P 500 cited inflation on their earnings calls for the first quarter—the highest number in FactSet's data going back to 2010. (The previous record was set during the earnings season for the second quarter of 2018, when 163 companies talked about inflation on their post-earnings calls.)
The industries that most focused on inflation? Industrials (with a total of 48 companies mentioning it), consumer discretionary (34 companies) and consumer staples (26 companies).
Inflation isn't necessarily an earnings killer. Last earnings season, for instance, several companies mentioned either hiking prices or being prepared to do so to offset increases in prices for things like shipping goods, raw materials and labor.
Stay tuned to see if the next earnings season will reveal similar themes.
One Likely Hot Topic for Earnings Season Next Month - WSJ.com - The Wall Street Journal
Read More
No comments:
Post a Comment