Bloomberg · U.S. · Iran · Axios
Corporate America shrugging off economic uncertainty as earnings deliver
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Corporate America is delivering the goods this earnings season, dampening fears about the economy, even as rising energy prices threaten to undermine the momentum.
Key facts
- About two-thirds of the way into earnings season, 84% of companies in the S&P 500 have topped earnings estimates, according to FactSet
- Corporate earnings aren't a 1-to-1 indicator of the economy's health, but they're not a bad sign either
- Corporate America is delivering the goods this earnings season, dampening fears about the economy, even as rising energy prices threaten to undermine the momentum
- Yes, but: The collapse of Spirit Airlines after jet fuel prices spiked illustrates how much damage the Iran war could yet cause to the economy
Summary
Economic uncertainty tied to the Iran war, alongside stubborn inflation and souring consumer sentiment, don't seem to have derailed earnings in Q1. About two-thirds of the way into earnings season, 84% of companies in the S&P 500 have topped earnings estimates, according to FactSet. "Both the percentage of S&P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises are above recent averages," FactSet reports. "This is one of the best earnings seasons in 20 years," Deutsche Bank researchers wrote Wednesday.