Second Quarter Earnings Season Update
Amid the barrage of nearly constant economic and market data, nothing is more important to assess the health of corporate America than the quarterly check-in that we affectionately call earnings season. As earnings season approaches its halfway mark, it’s a good time to take a look at what we’ve learned so far.
With market valuations creeping higher, the fuel to propel further gains from stocks will likely come from accelerating earnings and revenue growth. Coming off of the heels of only modest gains in 2013, this year has seen a much brighter profit and sales environment. The results validate improved economic conditions across the globe and a potential turning point for U.S. companies, as an improved sales cycle might be the driver for stronger business spending and investment in the second half of 2014.