Since the beginning of the year, business news has been riddled with stories about historic market volatility, decades-high inflation rates, and an increasingly hawkish Federal Reserve.
Meanwhile, it’s earnings season. And corporate America has been announcing a mix of good and bad news with its quarterly financial results.
Amid this backdrop, a bullish story has been emerging: Expectations for earnings growth are being revised up.
“Since the beginning of the earnings season, 4Q21 EPS has been revised up 4.3% to $53.48 (+26% y/y) and 2022 EPS has been revised up 0.6% at $224.90 (+8% y/y),” JPMorgan’s Dubravko Lakos-Bujas wrote on Thursday. “Looking to the following year, 2023 EPS has been revised up 0.7% since the beginning of the earnings season to $247.54 (+10% y/y).”