From Goldman’s Weekly Kickstart note, a great breakdown of S&P 500 earnings (so far) categorized by sector, showing which have been beating on earnings and revenue and which have come up short.
The real insight here is in the “surprise” columns for both earnings and revenue.
As you can see, 42% of companies have had a positive earnings surprise. Just 19% have had a positive revenue surprise, meaning companies are (once again) doing much better squeezing out productivity and keeping wages down than they are growing the top line (growing the business).
This has been the trend for a while, leading to record high corporate profit margins (which some view as unsustainable) but for now they’re holding on.