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During each corporate earnings season, companies often comment on topics that had an impact on their earnings and revenues for a given quarter or may have an impact on earnings and revenues for future quarters. Given these concerns, have companies in the S&P 500 commented on inflation during their earnings conference calls for Q1?
To answer this question, FactSet searched for the term “inflation” in the conference call transcripts of all the S&P 500 companies that conducted earnings conference calls from March 15 through May 14.
Of these companies, 175 have cited the term “inflation” during their earnings calls for the first quarter. This is the highest overall number of S&P 500 companies citing “inflation” on earnings calls going back to at least 2010 (using current index constituents going back in time). The previous record was 163, which occurred in Q2 2018. In addition, the first quarter marked the largest year-over-year increase (+116) in the number of S&P 500 companies citing “inflation” on quarterly earnings calls going back to at least 2010 as well. With about 9% of the companies in the S&P 500 yet to report actual results for the first quarter, the total number will likely be higher than 175 once all the companies in the index have reported actual earnings and conducted earnings conference calls for the quarter.
At the sector level, the Industrials sector has the highest number of companies citing “inflation” on earnings calls for Q1 2021 at 46, followed by the Consumer Discretionary (25), Financials (22), Consumer Staples (21), and Materials (21) sectors. However, the Consumer Staples (84%) and Materials (75%) sectors have the highest percentages of companies that have cited “inflation” on their Q1 earnings calls from March 15 through May 14.
Metric | UpDn | This Week | Prior Week | Comments |
---|---|---|---|---|
Forward 12-mo Estimate | 🔵 | 190.12 | 189.96 | vs. @December 31, 2020 $159.02 |
2y Combined Average Growth Rate % | 🔵 | 7 | 6 | vs. @December 31, 2020 3% |
Forward 12-mo PE | 🔵 | 22 | 21.6 | vs. @December 31, 2020 26x |
Earnings Yield | 🔵 | 4.56 | 4.49 | vs. @December 31, 2020 4.23% |
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