Robust economy, with shrinking profits?

Noticed a couple TV ads recently. One for Ram pickups, the other for Jeep Compasses. Both ads offering prices 10% below sticker. That is a far cry from automakers, well, every “JC”, leveraging the “shortage” narrative to gouge customers.

If “JCs” can’t duplicate the margins they have been able to extract from customers over the last couple years, they may fail to deliver the expected “better than expected” profits.

Seems “the wise” might be noticing too. Current forecast for this quarter’s revenue at WalMart is a 4.3% y/y gain, but EPS is forecast to be $1.67, down from $1.77 last year. Of course, that could be lipstick, so that a $1.70 report will still be down from last year, on rising sales, but still “better than expected”.

Steve

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