I find that earnings seasons always provide important insights to investors. This is especially so in today’s climate, when there is so much uncertainty over macroeconomic conditions and stock prices have fallen hard.
With this in mind, here are the key themes I’ll be keeping an eye out for during the upcoming earnings season which will start in a few weeks.
Spending trends
The Federal Reserve’s tightening of monetary policy will likely impact consumer spending and company budgets. I will be keeping an eye on managements’ commentary about the business environment that they are in and the spending trends that they are seeing.
In the first quarter of 2022, it was heartening to see mission-critical software companies continue to post excellent results amid the wider market slowing down. I’ll also be looking for other companies that can come out of this environment stronger than they were before.
If these companies can continue to buck the trend...