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What Drove the Earnings Strength This Quarter?

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The Q2 earnings season has spotlighted the all-around strength in the earnings picture. The question now is whether the best is behind us or we can expect the momentum to continue going forward?

Estimates for the current period (2021 Q3) have been steadily going up, in-line with the trend that we have been seeing since last Summer. We can expect the earnings backdrop to remain favorable as long as this positive revisions trend remains in place.

That said, the magnitude of positive revisions to Q3 estimates remains below what we had seen in the comparable periods for each of the preceding two quarters.

In addition to the aforementioned positive revisions trend, the two other notable aspects of the Q2 earnings season, which is now moving into its final phase, include an all-time record quarterly earnings tally and very strong momentum on the revenue front.

For more details about the Q2 earnings season and expectations for the coming periods, please check out our weekly Earnings Trends report >>> Taking Stock of the Impressive Earnings Picture

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