Inflationary pressures are threatening corporate profitability. As third-quarter earnings season winds down, we're gathering intelligence to identify companies that will have advantages sustaining quality earnings and margins amid rising prices.

Whether inflation will be transitory or longer lasting, companies will be affected in diverse ways. For equity investors who target high-quality businesses, inflation must now be a key variable in fundamental research of portfolio candidates and holdings.

Across sectors and around the world, inflation was prominent in recent earnings reports. Yet even as many companies beat expectations, share-price reactions were often lukewarm amid concerns that company forward guidance is clouded by inflation risk. For both growth and value investors, the following inflation-related themes that surfaced can help frame the challenges ahead.

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AllianceBernstein Holding LP published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2021 12:23:07 UTC.