Earnings season is moving fast and furious with the latest batch of results and guides indicating more pronounced weakness than what the markets were expecting and certainly relative to the strong Q2 GDP print published this week.
No matter what happens, it is increasingly clear that guiding the Street for 2024 will be a larger-than-normal challenge for many companies — especially for the Banks.
Conservatism will again be the strategy and as we have consistently shared with our clients since Q3 2021, bullish on our company, not on the macro!
We hope you find our primary research timely, informative, and actionable, beginning with today’s “Commencing the Quarter” and throughout the Q3 2023 earnings season as we report on updates and emerging trends.
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®.
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 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.
Following last quarter’s survey that found a notable disconnect between investor sentiment and management tone, with investors more bearish and bracing for impact, this quarter’s survey reveals investor views are converging with those of management.
Following last quarter’s survey which found continued broad-based expectations for decelerating performance and global economic weakness but less draconian views first identified in Q3’22, this quarter’s survey identifies a notable disconnect between investor sentiment and executive tone, with investors more bearish and bracing for impact.
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