Earnings Season Finds Companies Bullish in Face of Supply Bottlenecks
- By John Tierney
- 4 min read
Summary
• A review of 3Q earnings shows Corporate America is still posting earning beats near 10% in 2021 – far above the normal 2% or so.
• In part analysts and companies alike are having difficulty gauging near-term trends in the Covid economy.
• But companies are also adapting rapidly to resurgent demand – and have been fed the bottom line by passing on rising costs.
• Companies seem confident these trends will continue. There is little concern about potential risks, such as sustained higher oil prices, port bottlenecks or inflation and a hawkish Fed.
Summary
• A review of 3Q earnings shows Corporate America is still posting earning beats near 10% in 2021 – far above the normal 2% or so.
• In part analysts and companies alike are having difficulty gauging near-term trends in the Covid economy.
• But companies are also adapting rapidly to resurgent demand – and have been fed the bottom line by passing on rising costs.
• Companies seem confident these trends will continue. There is little concern about potential risks, such as sustained higher oil prices, port bottlenecks or inflation and a hawkish Fed.
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