Despite the gains seen in equity markets through July and increased hope for averting a hard economic landing, there is still a lot of uncertainty out there for both our clients and investors (we’re seeing some of that nervousness manifest itself in August’s market performance). We heard this loud and clear (and early) in our latest Inside The Buy-Side® Earnings Primer®.
With Q2 2023 earnings season in the books, we “Close the Quarter” with some notable themes:
In this week’s Sector Beat, we analyzed annual revenue and EPS guidance provided by Consumer Discretionary companies with market caps greater than $500M that have reported to date.
There is little question that the consumer has held up better than most feared entering 2023. As a result, many of the companies in the consumer sector that have reported thus far have been able to navigate this environment due to conservative assumptions heading into the year.
Industrials are seeing a greater number of companies raising guidance across both revenue and EPS, with slightly fewer maintaining than the all-company benchmark.
Industrials generally continue to outpace conservative expectations that were set heading into 2023. Companies in this segment are starting to take the worst-case scenarios off the table and out of their guidance ranges as the economic environment is holding up well enough to garner some cautious optimism.
At a fundamental level, banks fared better than many feared coming out of the banking crisis last quarter. Many of the big lenders are benefiting from increased loan books and higher profits attributed to higher interest rates.
Investors Divided on Sentiment but Aligned on Perceived Executive Tone – Largely Characterized as More Upbeat – And Major Shifts in Sub-sector Views
Survey Finds Notable Disconnect between Investor Sentiment and Management Tone with Investors More Bearish and Bracing for Impact
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