News

This earnings season, Banks highlighted the enduring benefits of scale and deposit stickiness in an economy buoyed by low unemployment and persistent consumer spending.

In line with findings from our Inside The Buy-Side® Earnings Primer®, commentary from earnings call thus far reveal a cautiously optimistic tone among executives.

Heading into this past earnings season, our Q4’23 Inside The Buy-Side® Earnings Primer® registered a more optimistic tone overall after last quarter’s survey found sentiment increasingly trending neutral.

This week, we’re covering Materials in our Sector Beat — a must read if you’re interested in gleaning insights into broader economic indications for 2024.

Technology continues to dominate headlines and for good reason: the sector is experiencing somewhat of a renaissance. Developments in AI are hitting the market at an unprecedented cadence, with those companies most able to benefit from the AI revolution in the near term seeing actual and expected earnings rise along with stock multiples.

Similar to commentary we observed in our Big U.S. Banks Sector Beat, management teams continue to see consumer spending normalizing, but overall better than feared as some investors and corporate executives had been bracing for recession risk in early 2024.

In our early analysis of industrial earnings thus far, “stability” was the common tone evoked on calls — a welcomed message from one of the economy’s largest constituencies, and a far cry from recession projections heard throughout much of last year.

With a wall of worry resurrected earlier in 2023 for the sector, U.S. Bank year-end earnings performances seemed more muted in comparison.

This week officially commences Q4’23 Earnings Season!

Welcome 2024 – what is sure to be another dynamic year packed with opportunities, challenges, and surprises. Today’s The Big So What™ we will take look at key trends in place or emerging that we believe will shape 2024