While Q1 earnings results have not been great, they are nevertheless not as bad as some in the market had started fearing ahead of the start of this earnings reporting cycle.

Inflation remains a big headwind across the board, weighing on margins and profitability. But most companies are able to pass on the extra cost to end consumers, who still remain in excellent shape. In fact, there is no evidence in the Q1 results that we have seen already of the feared moderation in economic growth or consumer spending.

Netflix’s (NFLX Quick QuoteNFLX - Free Report) big disappointment notwithstanding, the tone and substance of management guidance and commentary also remains reasonable and reassuring. We aren’t referring to Tesla (TSLA Quick QuoteTSLA - Free Report) here whose blockbuster numbers may not offer universal read-throughs for the broader economy, but Proctor & Gamble’s (PG Quick QuotePG - Free Report) impressive results and guidance do lend themselves that type of reassuring read-through.

With respect to the Q1 scorecard, we now have Q1 results from 89 S&P 500 members, through the morning of April 21^st. Total earnings for these 89 index members are down -2% from the same period last year on +9.2% higher revenues, with 78.7% beating EPS estimates and 69.7% beating revenue estimates.

The proportion of positive EPS and revenue beats is the lowest since the second quarter of 2020, which was the worst affected period of Covid 19.

For more details about the Q1 earnings season and the overall earnings picture, please check out our weekly Earnings Trends report here >>>Positive Surprises at Covid Lows