S&P 500 earnings beats hit a 15-year low. More cost cuts are coming as companies play defense on profit margins
Publishing timestamp: 2023-02-22 16:50:00
Summary
S&P 500 companies are surprising to the upside in earnings by 1.6%, the smallest magnitude in 15 years. Companies are increasingly relying on cost cuts to beat Wall Street estimates, and some big consumer brands are still able to raise prices to defend margins. Companies are looking for ways to preserve margins and offset demand issues, and some are turning to cost cuts. A survey of CFOs and finance leaders from a spend management software company found that 49% of companies are looking to reduce their spending to increase profitability, and 86% view layoffs as a last resort.
Sentiment: MIXED
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Keywords: expedia group inc, s&p 500 index, earnings, tapestry inc, business news, airbnb inc, capri holdings ltd, coupa software inc, ralph lauren corp, under armour inc, economy, u.s. economy,
Source: https://www.cnbc.com/2023/02/22/sp-500-earnings-beats-hit-15-year-low-more-cost-cuts-are-coming.html