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%.1

The robust results are leading Wall Street analysts to raise estimates for the third and fourth quarters as well as the first-quarter 2022.1

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.2

It can sometimes be hard to understand what a specific company’s earnings report means to your overall portfolio.  The answer to that depends on a few things, but mainly if you own any of that specific company.  You may own the company with an individual stock, or it could be inside of a fund you own.  If you are curious about the specifics of your portfolio be sure to reach out to your advisor.

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.  If you haven’t worked with us in the past schedule a 15 minute discovery call to see if we are a right fit for you. 

1. Earnings Scout, July 23, 2021

2., January 22, 2021