‘Inflation’ an earnings concern for the most companies in at least 11 years

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The word “inflation” is being thrown around in post-earnings conference calls by the most companies in at least 11 years, enough to set a fresh record.

The word “inflation” is being thrown around in post-earnings conference calls by the most companies in at least 11 years, enough to set a fresh record, according to research provided by FactSet.

Among things mentioned as drivers of inflation are increases in raw materials costs, as a result of rises in commodities prices, and supply-and-demand dynamics, as demand has increased along with COVID-19-related reopenings faster than supply chains have reopened, given labor and weather-related disruptions.

Don’t miss: Companies that make things used to make things have seen earnings boosted by big jumps in prices. Is that a bad thing? The record number of inflation mentions comes even with 42 of the S&P 500 companies, or 8.3%, still having not reported results, so the actual number for the quarter will likely be higher, Butters said.

 

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