The first earnings season in the age of COVID-19 is wrapping up, and company reports gave a glimpse into how the pandemic is impacting corporate America. First quarter earnings per share for S&P 500 firms fell -14% year over year, the worst quarter since the global financial crisis. Additionally, a record number of companies withdrew earnings guidance, reinforcing the sense that investors are flying blind.
In this report, we put Q1 earnings into context and analyze why equities have bounced sharply even as economic data continues to collapse.1
