A bullish earnings story is brewing 📈
Recent improvements in profit margins are a good sign for earnings growth down the road 💪
Coming into Q3 earnings season, the metric to watch was profit margins.
Among other things, changes in margins would reveal whether companies still had room to improve productivity. And importantly, margins would help us understand the degree to which any weakness in revenue would translate into weakness in earnings.
With 92% of the S&P 500 having reported Q3 results, what we’ve learned is that margins continued to improve, driving better-than-expected earnings growth amid less-than-stellar revenue growth.
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