Impressive Earnings Season Wraps Up

First quarter earnings season was excellent by almost any measure.

According to LPL Research, “The numbers were strong even without the boost from the new tax law. In this week’s commentary, we recap the outstanding near-complete first quarter earnings season, highlight some of the key themes, and show why a potential peak in earnings growth is not cause for immediate concern.”

Key takeaways include:

  • The new tax law, better economic growth, robust manufacturing activity, and a weak U.S. dollar were among the factors contributing to such a strong first quarter earnings season.
  • Companies with more overseas revenue generally saw faster earnings growth this season, while corporate buybacks and capital spending were on the rise.
  • Earnings growth may slow, but an earnings growth peak does not mean a recession is looming.

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