Stacy Bush

Favorable forecasts lead analysts to raise their projections for the year ahead.

Corporate earnings season has begun and the results are turning heads on Wall Street.

Of the 120 companies in the S&P 500 index that reported numbers as of Friday, July 23, 89% of them beat the Street’s earnings-per-share estimates by an average of nearly 21%.

The robust results are leading Wall Street analysts to raise estimates for the third and fourth quarters as well as the first quarter 2022.

Earnings season occurs four times a year, and it’s the time when a majority of publicly traded companies release their quarterly financial reports. Companies often go into great detail about their business and some provide guidance about what lies ahead.

Typically, earnings season starts several weeks after the calendar quarter comes to a close. For example, the second quarter’s earnings season began in mid-July, and the majority of companies are expected to release their earnings over the next six weeks.

If you hear any confusing commentary, please give us a call. We always welcome the chance to talk about what earnings may be saying about the overall economic outlook.

This information should not be construed by any client or prospective client as the rendering of personalized investment advice. All investments and investment strategies have the potential for profit or loss, and there can be no assurance that the future performance of any specific investment or investment strategy including those discussed in this material will be profitable or equal any historical performance levels. Investment strategies such as asset allocation, diversification, or rebalancing do not assure or guarantee better performance and cannot eliminate the risk of investment losses. Any target referenced is not a prediction or projection of actual investment results and there can be no assurance that any target will be achieved. Stacy Bush is with Bush Wealth Management.