US earnings sicken on margin crush

JPM with the note. Headline numbers are decent so far but the inflationary margin crush is not pleasing markets.

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Based on 21% of S&P 500 companies that have reported so far, 73% are beating 1Q earnings and 64% are beating
revenue estimates.
 Earnings have surprised to the upside by 4.7% (vs. 16.5% on avg. through past 4Qs) and 6.9% (ex-Financials).
 For companies that have reported so far, 1Q Revenue Growth is around 9.2% y/y and Net Income Growth is -2.2%.
 Average price performance relative to the market 1D post-earnings has been +0.2% (median performance +0.8%).
 Busy week for earnings with ~50% of S&P 500 companies reporting (~$19T of market cap).
 We estimate roughly 64% of S&P 500 companies are currently in earnings blackout.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.