Company mentions of "election" are spiking
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Lazaro Gamio/Axios
America's largest companies are talking to Wall Street about the stakes of the presidential race more this year than in recent election cycles.
Why it matters: The economic policy fallout from this election — huge tariffs? higher tax rates? — appears more high stakes for corporate America than in the recent past, at least if the elevated election talk is any guide.
By the numbers: "Election" or "elections" was mentioned at least once in 116 of the 324 earnings call transcripts tracked by FactSet and held from mid-September through the end of last month.
- That's a bump up from 2020 when 102 companies discussed the election during the same period.
- In 2016 just 67 of the 284 companies that hosted earnings calls in this window did so, FactSet analyst John Butters told Axios.
The intrigue: Only nine S&P 500 companies mentioned the 2024 candidates by name. Former President Trump got name-checked twice as much (6) as Vice President Harris (3).
- Roughly 30 companies spoke in detail about election-specific policies. Trade and tariffs came up most often.
The big picture: Trump has threatened to slap high tariffs on all U.S. imports — arguably the most controversial economic policy of the election cycle for corporate America.
- Higher tariffs would translate into higher costs that companies would pass on to consumers, who are particularly price-sensitive after the inflation shock.
What they're saying: "If Trump wins the election, we are likely in a new tariff regime," Don Allan, CEO of Stanley Black & Decker, told analysts last week.
- "We have been planning for this possibility since the spring."
What to watch: Investment in the green technology industry was incentivized under Biden; it's unclear what happens if Trump wins.
- "There is a little bit of a wait-and-see approach" with customers in the electric vehicle and renewable energy sectors, Michael Dastoor, CEO of manufacturer Jabil, which makes parts across both industries, said last month.
EV charging company Beam, which is not in the S&P 500, said the election suspense is slowing federal purchases of electric vehicles.
- "We had a buyer the other day say to me, 'If Donald Trump gets in, EVs will be illegal,'" Beam CEO Desmond Wheatley said. That is not true, but that is the perception, he added.
