The Clap
Analysts’ expectations for Q1-2022 earnings are blurry amid soaring inflation, rising interest rates, & the Russia-Ukraine crisis.
How blurry?
Capital, labor, commodities, & crude have become more expensive since late 2021 & through the first quarter of 2022. However, expectations remain positive. Analysts expect a 6% year-over-year increase in Q1-2022 S&P 500 earnings.
Q4-2021 earnings came in better than expected as companies held up against several issues & disruptions. But now that these challenges persist, some companies have had to reassess their 2022 profit forecasts.
The big question
While it’s easy to identify the challenges facing companies, it’s trickier to evaluate how much of those challenges have already been reflected in individual company shares.
