To The Moon

[Earnings Q1 2022 INFOGRAPHIC]

The S&P reported growth in earnings of 9%, the lowest growth rate since 2020.

77% of S&P 500 Companies exceed EPS Estimates, equal to the five-year average of 77%.

68 companies provided nagative EPS guidance of Q1, the highest number since Q4 2019.

The Energy Sector reported the highest earnings growth of all 11 sectors in the S&P 500 at 268%.

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Source: FactSet

Of these 476 companies, 281 have cited the term “Ukraine” on their earnings calls for the first quarter, which is well above the five-year average of six.

In fact, this is the highest number of S&P 500 companies citing “Ukraine” on earnings calls going back to at least 2010 .

Source: FactSet

In addition, the first quarter also marked the highest percentage of S&P 500 companies citing “Ukraine” on quarterly earnings calls going back to at least 2010 at 59% (281 out of 476).

By comparison, 85% of S&P 500 companies (406 out of 476) have cited “inflation” on earnings calls for Q1, while 74% of S&P 500 companies (352 out of 476) have cited “supply chain” on earnings calls for Q1.

Source: FactSet

Sector Impact

At the sector level, the Industrials (48), Information Technology (45), and Financials (43) sectors have the highest number of companies that cited “Ukraine” on earnings calls for Q1.

Source: FactSet

On the other hand, the Energy (76%), Consumer Staples (75%), and Materials (75%) sectors have the highest percentages of companies that cited “Ukraine” on their Q1 earnings calls during this period.Of these companies, 338 cited the term “supply chain” during their earnings calls for the first quarter, which is well above the five-year average of 199. In fact, this is the third highest number of S&P 500 companies citing “supply chain” on earnings calls going back to at least 2010.

Source: FactSet

The current record is 363, which occurred in Q3 2021.

At the sector level, the Industrials (62) and Information Technology (48) sectors have the highest number of companies that cited “supply chain” on earnings calls for Q1.

Source: FactSet

Impact on Net Profit Margin Expectations

The current net profit margin estimate of 12.5% for Q2 2022 is below the estimate of 12.7% on March 31, while the current net profit margin estimate of 12.6% for CY 2022 is also below the estimate of 12.7% on March 31.

Source: FactSet

Companies in the S&P 500 recorded an average earnings gain of 9% over the same quarter a year earlier, according to FactSet data from the recently concluded earnings season. That result marked the slowest growth rate since the fourth quarter of 2020.

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