Eric Lynch, managing director at Scharf Investments, discussed what to look for in Q1 earnings season kicking off this week. With the S&P 500 at 21.5x 2024 consensus earnings and imminent rate cuts off the table, U.S. corporate earnings must RAMP: “Reflation,” “AI,” “Margins,” and “Profit Ramping” are key factors to watch in company releases. We see downside risk to the 11% EPS growth estimates for all of 2024, and Q1 will be an early indicator if we can ramp from current 3% trend profit growth.

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