Earnings Watch: A Synchronized Recovery in Global Earnings

Q2 2021 | Notes from the Global Growth Equity Desk

By Laura Granger and Jonathan Bauman

Key Takeaways

  • Earnings growth continues to improve, even in regions that lockdowns continue to still affect.
  • Pent-up demand, healthy corporate and consumer balance sheets, and monetary and fiscal policy are fueling revenue and profit growth.
  • Inflation is top of mind for CEOs, but most believe the trends are transitory. So far, stronger sales have helped businesses absorb higher costs.
  • Strong results underpin confidence in a broader earnings recovery.
  • Markets rose in anticipation of the profit recovery, but we believe actual results will determine whether the advance can be sustained.

The most recently completed earnings season marked the fourth consecutive quarter of companies exceeding analysts’ expectations.

Quarterly Earnings Watch

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