The calm before the storm
Sep 19, 2022
The upcoming Q3 result season will be an important indicator on how the corporate world is dealing with inflation, rising interest rates and a slowing economic environment. The fall in the stock price of Fedex last week after its profit warning was a reminder on how sensitive investors are to disappointments in guidance. Of the 105 companies out of the S&P 500 that have changed guidance to date, the overall picture in the US still looks relatively calm. 62% of the 105 companies have issued a negative EPS guidance for Q3, only slightly more than the average result season. This could well be the calm before the storm.