034: A Comprehensive Review and Recap of the Second Quarter Earnings Season 08-14-23

Megan delivers a comprehensive review and recap of the second quarter earnings season. With over 90 percent of S&P 500 companies having already reported their earnings, Megan highlights that an impressive 80 percent of them have exceeded estimates, surpassing the five-year average. Notably, earnings have surpassed initial estimates by a remarkable five to seven percent, a significant deviation from the typical three to five percent trend.

Megan sheds light on standout sectors, such as consumer discretionary, which has demonstrated sustained demand for areas like hotels, leisure, and recreation. This phenomenon, coupled with the pivotal role of Amazon, has propelled the consumer discretionary sector to achieve robust earnings during this quarter. Conversely, the energy sector faced challenges, marked by a staggering 50 percent year-over-year decline due to lower energy prices.

Beyond earnings, Megan addresses the intriguing trend of companies experiencing less margin squeeze than initially predicted. The ability to pass on prices has played a key role in maintaining healthier profit margins. Looking ahead to 2024 and beyond, Megan emphasizes the current lack of consensus among analysts regarding earnings projections, warranting continued vigilance.

For more insightful analysis, updates, and expert opinions on the financial landscape, stay tuned to "Markets with Megan." If you have any questions or feedback, we invite you to connect with us by reaching out to the podcast at verdence.com. Thank you for joining us on this journey of financial exploration and understanding.