S&P key themes from 3Q 2011 earnings conference calls

(1) Uncertainty regarding the US economic outlook, regulatory environment, and global political landscape erodes management confidence
(2) Companies respond to uncertain outlook by cutting costs, postponing hiring, delaying investments, reducing inventories, and strengthening balance sheets
(3) Profit margins stand at peak levels but while some firms are raising prices and expect margins will rise others expect margins will fall given the inability to pass through higher input costs
(4) Emerging markets continue to drive growth despite weakness in developed markets

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: