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High Bar, Two-Sided Risks: What To Expect From Earnings Season
Reporting season starts next week, and analysts collectively have great expectations for corporate America.
Consensus expects 8% YoY profit growth for the S&P in aggregate, the second-highest pre-season bar to clear since 2021, when the C-suite was hurdling pandemic comps.
By sector, Wall Street expects the briskest growth from Comms Services and Tech, at 19% and 18%, respectively. Energy companies will likely report a sharp YoY profit decline.
The figure below, from Goldman, gives you so
H-Man, I expect a strong to moderate earnings season (good news = bad news) which will forestall additional rate cuts coupled with “it won’t go away inflation”. Even “weak” future outlooks by reporting companies will not stem the tide of no cuts. No need to juice the punch bowl when it is full at 98 proof.