Q1'24 Inside The Buy-Side® Earnings Primer®

The Big So What™ logo
By providing The Big So What™, we inform, inspire, and influence positive change
1 min. read

Industrials Sector Beat

With 53% of the S&P 500 reporting earnings to date, 78% have reported a positive EPS surprise, above the 1-year average of 73%. Companies are reporting earnings 7.7% above consensus estimates, well above the 1-year average of (+2.8%) but below the 5-year average (+8.4%).

We analyzed annual revenue and EPS guidance provided by 30 industrial companies with market caps greater than $500M that have reported to date. Below are our findings.

Corporates are playing to the under promise and over deliver agenda this year, a good strategy amid continued uncertainty:

  • EPS: 56% maintained, 41% raised, 3% lowered
  • Revenue: 68% maintained, 24% raised, 8% lowered

Further, we analyzed the earnings calls for this group and the broader industrial universe to identify key themes.

  • Macro Outlook: All Eyes on the Consumer as Most Expect Turbulence in 2023, Particularly in Residential and Freight; Executives Lean on Secular Growth Messaging as Stimulus Tailwinds Begin to Materialize
  • Backlog & Order Rates: Backlogs Appear Largely Healthy; Analysts Tune Into Book-to-Bill to Decode Supply and Demand, Questioning Whether It’s Backlog Digestion or More Indicative of a Broader Demand Slowdown
  • Supply Chain: Constraints Largely Easing and Focus Centers on Strengthening, Including Continued Mentions of Reshoring
  • Capital Allocation: Growth Investments Remain En Vogue While Questions Focus on M&A Appetite Given Well-Capitalized Balance Sheets
  • Margins: Persistent Elevated Inflation and Lower Volume Mentions Driving Continued Pricing and Expense Management Actions to Offset Pressures
  • Regional Spotlight: China – Executive Calculus Equates Reopening with Recovery; While Some Are Not Seeing Benefits Yet, Positive on the Balance of the Year and Beyond

Corbin Advisors is a strategic consultancy accelerating value realization globally. We engage deeply with our clients to assess, architect, activate, and accelerate value realization, delivering research-based insights and execution excellence through a cultivated and caring team of experts with deep sector and situational experience, a best practice approach, and an outperformance mindset.

Partner with Us

Leverage the experience and expertise of our team.

A strategic consultancy accelerating value realization globally

Subscribe to Inside The Buy-Side®

Access insights in our regularly published research, which captures trends in institutional investor sentiment globally.

Name(Required)
© 2024 Corbin Advisors. All Rights Reserved.
© 2024 Corbin Advisors. 
All Rights Reserved.
Scroll to Top