Sep 30, 2018

Earnings everywhere are outpacing expectations

Data: FactSet; Chart: Andrew Witherspoon/Axios

It’s not just stock prices and FICO scores that are hitting record highs. In the first quarter of this year, 403 of the stocks in the S&P 500 delivered earnings higher than Wall Street analysts had forecast — a record that was promptly broken in the second quarter, when 407 stocks achieved that feat.

The big picture: Earnings beats are always more the rule than the exception, even during bear markets. But these levels are unprecedented.

The big question: How are so many companies managing to beat expectations, quarter in and quarter out?

  • The strong economy, combined with tax-cut revenues, certainly helps.
  • Companies announce earnings guidance figures they know they can beat, in a sign that they're feeling very little pressure from Wall Street that their profits aren't high enough.

The bottom line: Wall Street is enjoying a rare period of being very happy with the companies it invests in and the amount of money they're making.

Go deeper

Kenan Thompson and Hasan Minhaj to headline White House Correspondents' Dinner

Kenan Thompson on "SNL" in 2018. Photo: Rosalind O'Connor/NBC via Getty Images

Kenan Thompson, the longest-tenured "Saturday Night Live" cast member, will host the White House Correspondents' Association dinner on April 25.

And Hasan Minhaj — host of Netflix’s "Patriot Act with Hasan Minhaj," and the entertainer at the 2017 dinner — will return as featured entertainer.

"Billions": Season 2020

Mike Bloomberg speaks at Hardywood Park Craft Brewery in Richmond, Va., on Saturday. Photo: James H. Wallace/Richmond Times-Dispatch via AP

Money alone can’t buy a presidential election, but it surely gets you VIP access.

Why it matters: Billionaire Michael Bloomberg is duking it out with Billionaire Donald Trump, often on Billionaire Jack Dorsey’s Twitter and in ads on Billionaire Mark Zuckerberg’s Facebook, all chronicled in Billionaire Jeff Bezos’ Washington Post. 

Biometrics invade banking and retail

Illustration: Eniola Odetunde/Axios

Banks have been quietly rolling out biometrics to identify customers — verifying them by their fingerprint, voice or eye scan — and retailers like Amazon are getting into the game.

Why it matters: These companies are amassing giant databases of our most personal information — including our gait, how we hold our cellphones, our typing patterns — that raise knotty questions about data security and privacy.