Slicing & Dicing TCJA Earnings Windfall

(1) More TCJA good news ahead in Q1-2018 earnings season. (2) Revenues also boosting earnings on better global growth, higher oil prices, and weaker dollar. (3) Upward earnings revisions for 2018 driven much more by TCJA than by better rvenues. (4) Profit margins jump as a result of TCJA. (5) Corporations likely to use TCJA windfall for capacity expansion, labor compensation, buy backs, and dividends. (6) While statutory tax rate was cut by 40%, effective rate was cut by 34%. (7) Repatriated earnings should bring back lots of cash, i.e., $1.9 trillion after taxes.