The latest earnings reporting season has started out well, with a particularly high number of US companies raising their guidance on future earnings. Typically, around 27% of companies adjust their outlook upwards, when they announce third-quarter results, but this time the share is over 36%. This optimism is partly a rebound from the extreme pessimism that reigned after April’s ‘Liberation Day’ announcements on import tariffs. Things have turned out much better than expected and companies’ messaging on their prospects reflects the improved outlook.
For more on the latest round of company results reporting, read The great (earnings) divide.
