First Quarter Earnings Preview: What to Watch

According to LPL Research, there is reason to believe there is another strong earnings season on tap.

“First quarter earnings season, which kicks off April 12–13, sets up to show solid growth, buoyed by tax reform.”

Key takeaways include:

  • The new tax law, solid economic growth globally, robust manufacturing activity, and a weak U.S. dollar set up another potentially strong earnings season.
  • Key areas to watch this quarter include companies’ uses of tax law proceeds, reaction to trade tensions, and possible wage pressures.
  • Though difficult to predict, results may help stocks stabilize by shifting investor attention away from trade headlines and toward strong company fundamentals.

Read more from John Lynch, Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial here.