Rising costs and logistical bottlenecks have been a recurring theme in the Q3 earnings releases. We started hearing about these issues right from the start of the reporting cycle when FedEx (FDX Quick QuoteFDX - Free Report) reported and even Apple’s (AAPL Quick QuoteAAPL - Free Report) and Amazon’s (AMZN Quick QuoteAMZN - Free Report) results were impacted by these issues.

The profitability of some companies and industries suffered as a result of these headwinds, but growth in the aggregate has largely held up better than expected on the back of strong demand that drove top-line gains.

For the 421 S&P 500 companies that have reported Q3 results through Thursday, November 4^th, total earnings are up +41.9% from the same period last year on +18.9% higher revenues, with 80.5% beating EPS estimates and 75.1% beating revenue estimates.

Net Margins in the aggregate are up for the index in Q3 from the year-earlier level, but a number of sectors are experiencing notable margin pressures. To the extent that the aforementioned headwinds currently weighing on margins dissipate over the coming months, we can envision margins getting back to normal. Current consensus estimates for the coming periods reflects this favorable margins view.

For more details about the Q3 earnings season and evolving expectations for Q4 and beyond, please check out our weekly Earnings Trends report >>> Looking at Margin Trends in the Face of Inflationary and Logistical Issues