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Earnings Season Has Been Great So Far With Profit Margins Holding Up in the Face of Inflation

Earnings Season Has Been Great So Far With Profit Margins Holding Up in the Face of Inflation
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Companies Are Reporting Better Performances Than Wall Street Expected


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Companies Are Reporting Better Performances Than Wall Street Expected
15 hours ago
Financial earnings in early 2021 turned out to be better than most were expecting. Ed Hyman chairman and head of the economic research team for Evercore ISI wrote in a note to clients, “There’s evidence every day that growth is clearly improving around the
world, today from the US to Australia.”
So far, first-quarter earnings have been reported by 34 companies in the S&P 500. According to the Earnings Scout, 88% of those reported have topped their Q1 2021 EPS estimates by an average of 22%. ....

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So Far in Earnings Season, Companies Are Reporting Numbers Way Above What Wall Street Expected


Will these huge earnings beats continue? Don t bet on it, Raich tells me.
Analysts cannot see the future. The reason they are so far off is that with no clues from the companies, they get very conservative, he said. As companies give more guidance and the pandemic recedes, you will see the analyst estimates start to narrow.
Still, that is not a reason to be pessimistic. What matters for stocks is earnings estimates for future quarters, and here there is also good news.
The majority of the companies that have reported are seeing their second quarter estimates raised, which is very positive for stocks, Raich said. ....

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