News & Insights
Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets. Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.
Earnings Pop but Banks and Economy Lag
First quarter earnings came in well above expectations, with more than 93% of companies reporting. Earnings per share are up 5.7% year-over-year, the best quarterly result since the second quarter of 2022. The average beat of 7.5% is above the 10-year average. Second-quarter estimates are being revised upward, which is unusual this early in a quarter. In contrast, revenue growth is weaker than earnings, growing below the 10-year average. Strong earnings growth in a weakening revenue environment has necessarily been driven by higher profit margins, which have edged up to 11.7%. The current consensus forecast of 11% EPS growth for 2024 looks aggressive amid eroding pricing power and a slowing economy.
Subscribe to our News & Insights
Get the latest posts straight to your inbox