A Fair Assessment

It’s been a very busy earnings season. While keeping up with the operating results of 300 companies is always a challenge, I find it helpful in determining where we are in the profit cycle (important when normalizing cash flows).

I’ve reviewed approximately 1/3 of my possible buy list. To date, it appears earnings are coming in as I expected and are slightly better than today’s 0.7% GDP report suggests. The operating environment isn’t great, but it’s not bad either. I thought the following exchange on Forward Air’s (FWRD) conference call sums up earnings season well.

Analyst: And then just to summarize the totality of your comments earlier. The economy is okay, probably growing a little bit. You don’t expect it to accelerate too much, but don’t see it getting any weaker. Is that fair?

CEO: I think that’s very fair.

I should have a thorough review of earnings season and management commentary next week. Have a great weekend!