How The Government Shutdown Impacted Earnings

The partial government shutdown spanning five weeks between Dec. 22 and Jan. 25 impaired the economy, with the Congressional Budget Office estimating that fourth-quarter GDP will be reduced by $3 billion.

The residual impact could hit Q1 GDP by $8 billion, according to CBO estimates.

Companies aren't immune to the shutdown — especially those which supply contracted services and goods for the government.

Of the 106 S&P 500 companies that reported earnings through Thursday, Jan. 24, about 15 said on their earnings call that the shutdown negatively impacted them directly or indirectly, according to a Factset report released Monday.

About 34 companies discussed the shutdown on their call, and 13 of these companies said they saw no impact from the shutdown.

Among the companies that reported taking a hit, seven said they are seeing a delay in government approvals and reviews. Four said it is too early to quantify the impact and another four discussed a quantifiable impact. Three companies said the shutdown contributed to client or overall economic activity.

Delta Air Lines, Inc. DAL, Southwest Airlines Co LUV and SVB Financial Group SIVB said they experienced a delay in a government approval as well as a quantifiable negative impact on revenues.

Among the sectors, financial and industrial stocks discussed the shutdown on the earnings call more than other sectors, accounting for two-thirds of the 34 who raised the issue. 

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