Bloomberg Intelligence's 'Equity Market Minute' 1/18/2022

Gina Martin Adams discusses the expected 27% earnings growth for S&P 500 companies in Q4 2021, surpassing the consensus of 20%. The focus is on how companies handle inflation trends, which are crucial for future outlooks. EPS and sales growth are predicted to slow but remain above average, with net income margins showing optimism. Analysts expect companies to manage inflation pressures, maintaining higher margins. Operating margins are anticipated to improve, with inflation risks easing. The session concludes with a positive outlook for 2022.

What is the expected earnings growth for S&P 500 companies in Q4 2021?

• 27%

• 20%

• 30%

• 15%

Why is the discussion on inflation trends considered more important than the earnings beat?

• Because inflation trends have a long-term impact on the outlook

• Because inflation trends are less volatile

• Because inflation trends are easier to manage

• Because earnings beats are unpredictable

What is expected to happen to EPS and sales growth in 2022?

• They will decline below average

• They will remain above average despite slowing

• They will increase at the same pace as 2021

• They will stagnate

How are companies expected to handle current inflation pressures?

• By increasing prices significantly

• By reducing net income margins

• By cutting costs drastically

• By maintaining higher net income margins

What is the outlook for S&P 500 operating margins in 2022?

• They will remain at their lowest

• They will improve from their Q4 2021 lows

• They will stay constant

• They will decline further