Corporate America Impresses Again

November 28, 2018 | posted in: Blog, Financial Insights, LPL Weekly Market Commentary | by

According to LPL Research, “Corporate America produced another outstanding earnings season. We expected another quarter of strong earnings growth, and corporate America delivered even more than we anticipated. Third quarter numbers were excellent, even if the boost from the new tax law is excluded, as has been the case throughout this year. Revenue and earnings upside compared with expectations was particularly impressive, making prior assertions of an earnings growth peak premature. We’re also impressed by the resilience of companies’ outlooks in the face of tariffs and ongoing trade policy uncertainty.”

Key takeaways include:

  • Third quarter earnings season was again very impressive, with S&P 500 Index earnings growing 28% year over year, the fastest pace since the fourth quarter of 2010.
  • A pickup in economic growth, strong manufacturing activity, and tax cuts were the key growth drivers.
  • Guidance was generally positive despite tariffs and ongoing trade policy uncertainty

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