Earnings Colour: Companies See Recession Risk, But Far Off
- By John Tierney
- 5 min read
Summary
- Earnings season is going reasonably well. With 90% of the S&P 500 companies reporting so far, earnings beats are running at an average 4.3%, slightly better than 3.9% in 1Q.
- Many companies are maintaining full year outlooks for revenue and earnings despite ongoing challenges from inflation and supply chains. Companies see risks of a slowdown or recession but do not expect it soon.
- Those companies reducing outlooks are mostly doing so modestly, but their stock prices tend to get hit hard, suggesting investors are not pricing in risks of slowdown or recession yet.
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