Category: Corporate Earnings
The analysis published under this category are as follows.
Wednesday, December 18, 2024
LRCX Stock Split / Companies / Corporate Earnings
By: Nadeem_Walayat
Investors in Lam Research the 11th stock on my AI list get 10 new crispy shares for every one held, the normal pattern for most stocks is to rise into a split and fall afterwards as a sell the news event. Lam Research did bottom out $720 on 10th September and since rose to a recent high of $860 so a 20% rally, though in reality the stock has not done anything other than follow the script for the correction window that runs from Mid July to at least Mid October following it's FOMO run to $1120.
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Monday, December 04, 2023
Stock Market Seasonal Buying Opportunities / Companies / Corporate Earnings
By: Nadeem_Walayat
Dear Reader
Thursday, November 23, 2023
LMT, JNJ and ASML Stock Earnings and Trend Analysis / Companies / Corporate Earnings
By: Nadeem_Walayat
LMT $441 BMO - EGF -3% / -1% PE 15.9, -21% Range.
LMT is enjoying a price boost courtesy of the latest Middle East war that reversed an earlier downtrend that was targeting $370. Despite all of the wars earnings are not growing, so based on the fundamentals the stock should trade lower, i.e. target $370, but there is war fever inflating the stock price as the market discounts escalation to some degree, though nothing to suggest a major expansion in the conflict is imminent..
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Tuesday, January 31, 2023
KLAC Q4 Earnings - Buy the Rumour Sell the News / Companies / Corporate Earnings
By: Nadeem_Walayat
KLAC - $414 EGF 20%, EGF12M -9%, PE 17.5
KLA is on of my favourite higher risk semi stocks that trades on X17.5 on a market cap of $59bn about half that of AMD so not exactly a small cap high risk stock. What sticks out is it's relentless earnings growth as the below chart illustrates. The great bear market gave us two great sub $300 opps to accumulate in a stock that today at $414 carry's a lower valuation then when it was trading at $200 barely 2 years ago! If any of the semi stocks on my list is going to blast off to new all time highs then it is going to be KLA! I trimmed on the rally which brings my exposure down to 75% so I am eager to accumulate on the stocks next dip below $400 in advance NEW ALL TIME HIGHS. EGF of 20% strongly suggests to expect KLA to beat earnings.
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Monday, January 30, 2023
IBM Q4 Earnings - Buy the Rumour Sell the News / Companies / Corporate Earnings
By: Nadeem_Walayat
IBM - $142 EGF 22%, EGF12M 6%, PE 16
IBM the sleeping giant was one of the best performing stocks of 2022 and with very strong EGF's has the potential to blast off out of it's multi-year trading range towards $200 a share during 2023! A fair PE of 16 coupled with high EGF's suggest IBM really could surprise all who had written it off as a dead dividend stock, not with EGF scores of +22% and +6%! So whilst the stock price says SELL the dinosaur trading at the top of it's trading range, the fundamentals of the company say higher prices, especially if one understands what's going on under the hood in terms of Quantum Computing, AI and a library of tens of thousands of patents then the picture of IBM of the past that most hold in their mind is not the same as the IBM of today. The bottom line is that IBM is primed for a positive earnings surprise!
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Monday, January 30, 2023
ASML Q4 Earnings - Buy the Rumour Sell the News / Companies / Corporate Earnings
By: Nadeem_Walayat
ASML - $676, EGF 7%, EGF12M 6%%, PE 40
They aren't many stocks that can get away with trading on a PE of 40 but ASMAL can, why because they are a literal monopoly that no one else can replicate, produce the EUV machines that the likes of TSMC and Intel use to make the chips. First comes industry demand for the machines that make the chips then retail demand for the chips. The EGF's speak volume for why this stock trades at a hefty premium. ASML:is on a run towards new all time highs during 2023. The bottom line is that ASML will deliver an earnings BEAT.
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Monday, April 25, 2022
Google, Microsoft, Apple, Amazon, Facebook Tech Stocks Earnings BloodBath Week Buying Opportunities / Companies / Corporate Earnings
By: Nadeem_Walayat
In advance of my US housing market trend forecast to be posted before the end of this month here is a timely look at the big AI tech stocks that are reporting earnings next week, where the dominos could finally start falling as they continue Friday's plunge on break of key support levels for the likes of Nvidia and Google, where after a long wait big buying levels are finally starting to get triggered in the latest phase of the stealth stocks bear market that is cycling through target stocks like the tasmanian devil as we saw during the past week, with Friday's plunge ending what had been an developing stocks bounce, where my focus was on Google as it finally broke below $2400, a level that I had long flagged to patrons of where I would be buying big and in advance of warned Patrons for several weeks not to jump the gun regardless of what the indices were doing.
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Sunday, April 10, 2022
Eye On JPM Ahead of Earnings / Companies / Corporate Earnings
By: Mike_Paulenoff
JPM (JP Morgan) reports quarterly earnings this coming Wednesday during pre-market hours. Investor reaction to this particular report is positioned to have a significant influence on the price of the stock. JPM's outspoken and high profile CEO Jamie Dimon already has warned us that changing (i.e., deteriorating) macroeconomic and geopolitical conditions are making business more challenging for the bank, despite the fact that interest rates have backed up sharply in recent weeks, which usually is a prescription for stronger bank earnings.
One look at Mike Paulenoff's daily chart of JPM certainly indicates something else is on the mind of investors that is outweighing the traditionally positive influence of rising interest rates on JPM's bottom line.
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Sunday, October 25, 2020
Corporate Earnings Season: Here's What Stock Investors Need to Know / Stock-Markets / Corporate Earnings
By: EWI
Many investors and financial journalists believe that corporate earnings play a large role in driving stock market prices.
Here's just a couple of headlines from Oct. 13:
- Stocks open mixed on first day of earnings season (MarketWatch)
- U.S. Stocks Drop as Earnings Season Begins (Wall Street Journal)
The idea that earnings drive stock market prices seems to make sense. After all, corporations exist to make money, and if they exceed expectations, it seems logical that their share prices should skyrocket. If earnings disappoint, logic suggests that stocks should tank. And, in all fairness, when it comes to individual companies' earnings, they can and do affect prices -- although not always, and not always logically. But when you compare broad market performance with trends in earnings, you start to see a glaring disconnect. Why?
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Tuesday, January 21, 2020
Corporate Earnings Setup Rally To Stock Market Peak / Companies / Corporate Earnings
By: Chris_Vermeulen
Our research team believes the current Q4-2019 earnings season and expectations are prompting a “Rally To A Peak”. We’ve been warning our followers and clients that we believe the US Stock Market has rallied to levels that constitute a “near peak enthusiasm” related to historical price volatility.
As you’ll see from these charts, below, we are not dismissing this current upside rally and the potential that it could last for many weeks or months longer – we’re just warning our followers and clients that we believe a very volatile period or price rotation is setting up within the next 10 to 25+ days as prices reach the historical upper boundary.
Our researchers believe that price channels are a very common form of technical analysis. Price enters a channel when defined boundaries are established and when price continues to rotate within these boundaries. Historically, when a price channel is broken or breached, a new price channel is quickly established. You’ll see examples of this very clearly in the Custom US Stock Market Index and Custom Volatility charts below.
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Tuesday, November 19, 2019
Comments on Catena Media Q3 Report 2019 / Companies / Corporate Earnings
By: Submissions
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Thursday, February 07, 2019
Corporate Earnings Growth is Falling and Turning Negative. What this Means for Stocks / Stock-Markets / Corporate Earnings
By: Troy_Bombardia
As the stock market rallies higher and is on the verge of breaking out above its 200 day moving average, the outlook for Q1 2019 corporate earnings growth is falling. Is this bad news for the stock market?
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Friday, February 01, 2019
Amazon is Just the Latest Bellweather to Signal a Recession is Here / Companies / Corporate Earnings
By: Graham_Summers
While the media focuses on the political hot topic du jour, major corporations are telling us that a recession is fast approaching.
Economic bellwether and industrial Caterpillar missed estimates and downgraded its guidance for 2019. It now joins Amazon, Apple, Samsung, LG, Fed Ex, Johnson & Johnson, Nautilus, Tesla, Tailored Brands, Signet Jewelers, Delta, Skyworks, Macy’s, Kohl’s, and American Airlines… all of which have lowered forward guidance in the last month.
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Saturday, November 03, 2018
CareDx, FireEye, Tandem Diabetes Care, Xilinx - 4 Stocks to Watch on Earnings & Other News / Companies / Corporate Earnings
By: Harry_Boxer
Here are four stocks with strong technicals lifted by earnings and other news.
CareDx, Inc (CDNA) jumped $1.56 to $26.11 on over $1 million shares traded Wednesday, more than 1 1/2 times its average volume. The transplant diagnostics company is scheduled to report third quarter results on November 8. The move popped the stock out of a month-long coiling pattern. A move through the October 1 high near $19.50 could accelerate the stock towards the channel top in the high-$30's.
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Tuesday, May 08, 2018
Do Corporate Earnings Lead the Stock Market? / Stock-Markets / Corporate Earnings
By: Troy_Bombardia
I’ve been building more quantitative trading models recently. I know that some hedge funds calculate the stock market’s “fair value” and then trade around that fair value. For the record, this is not what I do with the Medium-Long Term Model.
This “fair value” is usually “the stock market’s average P/E ratio during certain market environments”. Here’s an example of how the stock market’s average valuation (P/E ratio) – aka “fair value” – changes based on changes in interest rates.
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Thursday, February 15, 2018
Tesla Cash Keeps Burning at $320 a Share / Companies / Corporate Earnings
By: EconMatters
Financial markets are off to a good start today trying to stabilize after the worst week in two years for American equities. The tumultuous move in equities last week wiped $2 trillion from US. Tesla Inc. (TSLA) stock performance also took a beating at its worst week since July. The stock is trading around $316 at this writing, up 15% in the past 12 months. That compares with gains of 13% for the S&P 500 SPX, 20% for the Dow Jones Industrial Average (DJIA).
Wednesday, November 08, 2017
4 Earnings Stocks Winners Breaking Out / Companies / Corporate Earnings
By: Harry_Boxer
Here are four stocks to watch riding positive earnings announcements.
Health Insurance Innovations, Inc. (HIIQ) broke out above a key resistance level on Tuesday, up $1.50, or 6.7%, closing at $23.70. The move above the $23 resistance level, which came on light volume of 945,700 shares, saw price cross over to the positive side of the 50-day moving average for the first time in two months. The stock is bouncing back from a steep decline in September, and has been climbing in a rising triangle pattern since its bottom at $12.65 on September 28. A week ago, the Web-based health coverage provider topped Wall Street's expectations in its earnings report. Next targets: $27.75 and $33.
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Wednesday, August 16, 2017
Why Is Home Depot Stock Slumping After Earnings Beat? / Companies / Corporate Earnings
By: Mike_Paulenoff
Home Depot (HD) beat on EPS, Revenues, and Same Store Sales when it reported on Tuesday prior to the market open. However, after initially popping 2.5% to 158.11 from Monday's 154.26 close, HD reversed sharply into negative territory at 153.00/10 in pre-market action and closed the day at 150.17, down 2.6%.
I am not sure what the selling is all about, except for a "sell-the-news" reaction, but one look at my 4-hour chart of HD, we can see that HD actually peaked back in mid-May, and since has established a series of lower-highs (including Tuesday morning's spike to another lower-high).
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Wednesday, December 21, 2016
Corporations Bringing the Big Bucks Home May Not Be the Solution / Companies / Corporate Earnings
By: Rodney_Johnson
Apple has a lot of cash.At last count, the company’s horde had grown to a record $237 billion. But, as we all know, almost half of that supply is stuck overseas. If Apple, or any other company that paid lower taxes (or no taxes at all) in a foreign jurisdiction brings the money home, they’ll have to pay Uncle Sam up to 40%.
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Tuesday, November 08, 2016
Here's Why Investors Should Ignore Corporate Earnings Season / Companies / Corporate Earnings
By: EWI
Shattering the myth about earnings and the stock market
[Editor's Note: The text version of the story is below.]
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Monday, November 07, 2016
Corporate Earning reports Have Turned into a Dangerous Shell Game / Companies / Corporate Earnings
By: John_Mauldin
You own stocks for two reasons. You either think the shares will gain value or give you dividend income, or both.
Neither will happen unless the company is making money or at least has the plausible hope of making money someday. Earnings reports are important because they tell us whether that’s happening.
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Monday, October 31, 2016
Corporate Earnings Fairytale Has an Unhappy Ending / Companies / Corporate Earnings
By: Michael_Pento
The air underneath stock prices is indeed getting very thin at these altitudes. According to none other than Goldman Sachs, median stock prices are positioned at the 97th percentile of historic valuations. Other metrics such as Median PE ratios, Market Price to Sales and Total Market Cap relative to GDP all validate the extremely overvalued condition of U.S. stocks.
Wednesday, October 19, 2016
What Do Declining Corporate Earnings Keep Telling Us? / Companies / Corporate Earnings
By: Rodney_Johnson
‘Tis the season. Earnings season, that is, and I don’t think we’re getting any presents.This week Alcoa kicked off the third-quarter earnings announcement season. The next couple of weeks will bring an onslaught of numbers, excuses, deflections, and projections. Company spokesmen and CEOs will spend time explaining why their industry is soft, and how better times are just ahead.
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Saturday, May 14, 2016
Beating Analyst Expectations Is All That Matters / Stock-Markets / Corporate Earnings
By: Barry_M_Ferguson
Read carefully. I just report what I read.
‘Zillow shares surge as quarterly loss narrows’.
CVS had a ‘healthy’ earnings report. Sales rose but earnings actually fell by 6%. How is that ‘healthy’?
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Wednesday, April 20, 2016
Corporate Earnings Actuall Now Matter? or Are They Too Bad To Ignore? / Companies / Corporate Earnings
By: Gordon_T_Long
With John Rubino & Gordon T Long
Bank profits are in trouble!. Don't be fooled by the "beat analyst estimates" charade, because that is exactly what it is. First quarter bank earnings can only be described as an unmitigated disaster.
With the aid of 24 charts, John Rubino and Gordon T Long discuss what they see in this 32 minute video, what is important to be aware of and what is being hidden from public scrutiny.
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Tuesday, March 01, 2016
The Great Corporate Earnngs Fraud / Companies / Corporate Earnings
By: James_Quinn
"What are the odds that people will make smart decisions about money if they don't need to make smart decisions -- if they can get rich making dumb decisions? The incentives on Wall Street were all wrong; they're still all wrong." - Michael Lewis, The Big Short: Inside the Doomsday Machine
Corporate earnings reports for the fourth quarter are pretty much in the books. The deception, falsification, accounting manipulation, and propaganda utilized by mega-corporations and their compliant corporate media mouthpieces has been outrageously blatant. It reeks of desperation as the Wall Street shysters attempt to extract the last dollar from their muppet clients before this house of cards collapses.
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Tuesday, January 26, 2016
As Corporate Earnings Slow, What Will Happen To Taxes? / Companies / Corporate Earnings
By: Rodney_Johnson
Last week the Census Bureau reported retail sales for December, and the numbers weren’t pretty. Sales dropped 0.1% overall last month, and were down the same 0.1% when auto sales were excluded. Removing volatile gasoline sales only moved the number to flat. Making matters worse, retail sales increased a paltry 2.1% for all of 2015 – the smallest gain since 2009, and well below the 3.9% growth in 2014.The report justified our negative view on earnings. Fourth-quarter numbers should be ugly. All of this plays right into our forecast for a general market decline and tough economic conditions in the months ahead.
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Tuesday, November 03, 2015
What Can’t Go On Won’t Go On, Part 1: Corporate Leverage / Companies / Corporate Earnings
By: John_Rubino
By now everyone knows the corporate share repurchase story, about how major companies are engineering higher per-share profits and share prices by buying back their stock and raising their dividends. But just how much they’re spending may still come as a shock.
Thursday, October 29, 2015
The Fed Just Whacked Corporate Earnings / Companies / Corporate Earnings
By: John_Rubino
The markets seemed to like what the Fed had to say yesterday, including the part about definitely, for sure, no kidding around this time raising interest rates in December. Especially elated were currency traders, who bid the US dollar up on the news.
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Wednesday, October 14, 2015
Walmart Stock Craters On Profit Warning - The Fatal Blindness of Greed / Companies / Corporate Earnings
By: Jesse
"America's great now -- it's never been greater.
Our kids are going to live so much better than we do now." Warren Buffett
“Among 21 countries in the study the U.S. ranks second-to-last in the percentage of its GDP spent on benefits for families, despite one of the highest relative child poverty rates of the comparable high-income countries. [only Turkey was worse because it failed to provide any data]” Child Trends, World Family Map 2015
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Saturday, September 19, 2015
The No. 1 Factor Dragging Down Corporate Earnings / Companies / Corporate Earnings
By: Investment_U
Rachel Gearhart writes: It’s no secret that the broader market has been rough on investors these past few weeks.
For one thing, we’ve had to contend with that whole yuan fiasco, which sent the Dow plummeting more than 1,000 points.
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Wednesday, August 19, 2015
McDonald Stock Investors too Optimistic / Companies / Corporate Earnings
By: AnyOption
There are some stocks on the market that investors just love to hate. No matter what these stocks do, it seems as if it’s never enough. And then there are the stocks that investors just can’t bring themselves to hate, regardless of all of the reasons why they probably should. McDonald’s is one of those stocks.In spite of the company experiencing an unprecedented downturn over the last two years, McDonald’s shares are actually up 5.51% over that time. Shares recently topped $101, pushing to a 13-month high with analysts expecting the company to finally start making a turnaround in terms of comp sales, where it has more than struggled recently.
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Wednesday, August 19, 2015
Corporate Profits Have Peaked — And Will Tank Next Year / Companies / Corporate Earnings
By: John_Rubino
One of the reasons US stocks have had such a nice run is that public companies have been making a lot of money. The profit bounce from Great Recession lows was both big and fast, taking corporate earnings to record levels both in nominal terms and as a portion of GDP.
Monday, July 20, 2015
Why Corporate Earnings Season Is the Most Wonderful Time of the Year for Traders Like Us / Companies / Corporate Earnings
By: ...
MoneyMorning.com
If you've traded for more than a few months, you've seen how earnings season can really move share prices – in both directions.
If you hold, say, a blue chip and it hits on earnings, you can book some nice single- or double-digit gains. Or, if there's a miss, you might take a loss.
In fact, earnings season trading is one of the most volatile strategies you can use. It's not for the faint-hearted.
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Monday, June 15, 2015
William Hill Is Riding On Conservative Party’s Win / Companies / Corporate Earnings
By: Submissions
Nicholas Kitonyi writes: William Hill, the UK-based giant gambling company along with its counterparts seems to have received a new lease of life for at least the next five years thanks to Conservative party’s win during last month’s election.
Shares of William Hill Plc (LON.WMH) had taken a tumble days leading to the UK house elections which took place on May 7. The company’s stock price fell by close to 30 pence from 390 pence to about 361 pence between April 10 and April 30, as investors feared the consequences of a Labour party win, especially for those who invest in UK gambling stocks.
Friday, May 15, 2015
McDonald's Future Is Hard to Digest (NYSE: MCD) / Companies / Corporate Earnings
By: ...
MoneyMorning.com Shah Gilani writes: I love McDonald's burgers, fries, and shakes. What I don't love is its current stock price.
Don't get me wrong, the stock's been a huge gainer over the past decade. It's risen more than 230% in the past ten years while throwing off decent dividend income.
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Thursday, May 07, 2015
Twitter Earnings Leak Fiasco: A Payday for Wall Street's Relentless Data Pursuit / Companies / Corporate Earnings
By: EconMatters
Twitter's had a very bad week when its stock tanked ~ 27% in 5 trading days. It all started when its weak 1Q earnings was posted early by Nasdaq on Twitter's IR web page. Twitter originally planned to release earnings after market close on Tuesday (so investors may have time to digest the not-so-impressive 1Q numbers to perhaps arrive at a more rational course of action).
Wednesday, April 29, 2015
Whether to Invest in McDonald's Future / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes: When McDonald's Corp. (NYSE: MCD) reported earnings last week, it missed terribly by almost every metric possible.
Yet traders are taking the stock higher, leading many investors to conclude that they should be along for the ride.
Unless you like Vegas-style odds, that's not a bet I'd recommend you make. Here's why…
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Thursday, April 23, 2015
What McDonald’s Corporate Earnings Report Is Really Telling You / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes: McDonald’s Corp. (NYSE:MCD) reported earnings before the bell Wednesday morning, and missed terribly by almost every metric possible. Yet, traders are taking the stock higher, leading many investors to conclude that they should be along for the ride.
Unless you like Vegas-style odds, that’s not a bet I’d recommend you make.
Our Total Wealth Principles are built around companies with proven results that are gained by virtue of the fact that they’re tapped into globally unstoppable trends backed by trillions of dollars. McDonald’s is a turnaround situation, and this rally is powered by optimism that is anything but proven.
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Thursday, April 16, 2015
Blackstone is like Apple, Google, Hermes, Boeing / Companies / Corporate Earnings
By: Bloomberg
Blackstone CEO Steve Schwarzman appeared on Bloomberg TV with Betty Liu and Erik Schatzker to discuss the firm’s earnings, saying: "You can be a buyer and a seller at almost the same time and do well doing both...The firm keeps growing at a really good clip."
Schwarzman said: "I think that the world is going to recognize that we have a really differentiated model. We are really more like a great branded company…We dominate our market. We are more like an Apple, a Google, a Boeing, a CAT, an Hermes. We have customers who need us, just like those companies do."
Wednesday, March 11, 2015
The Best Way to Trade off Sony Stock's Success / Companies / Corporate Earnings
By: Money_Morning
Tom Gentile writes: Sony Corp. (NYSE ADR: SNE) had another blockbuster on its hands with its latest movie release, "50 Shades of Grey," based on the best-selling book of the same name. While most parents justifiably didn't take their kids to this movie, adults seeking the cover of a wide release to justify their desire to watch soft-core porn have flocked to the theaters over the last 30 days.
Friday, February 06, 2015
Why Corporate Earnings Reports Are Overrated / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes: What I am about to share with you today won’t win me any friends on Wall Street. But, that’s how it goes.
This is important information to you as an investor and that’s why you need to know what it’s telling you. So I’m happy to take my lumps and show it to you anyway…
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Friday, September 19, 2014
How You Can Tell When a Company’s P/E is All Flash / Companies / Corporate Earnings
By: John_Mauldin
By Andrey Dashkov
College reunions are toxic. Except for the few precious moments of genuine human connection, these parties are nothing but status pageants. Suits and watches are inconspicuously glanced at, vacation photos (carefully selected the night before) are passed around; compensations guesstimated; Platinum Master Cards flashed (“Oh no, let me take care of this round!”); spouses evaluated based on trophy-worthy qualities… and inconspicuously glanced at.
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Monday, August 04, 2014
The Fed-Induced Stock Market EPS Fairy Tale / Stock-Markets / Corporate Earnings
By: Michael_Pento
The stock market has advanced sharply over the past five years no matter what geopolitical situation has blown up or how tenuous the economic foundation may be. This is because Investors have simply been forced to throw money at the market with a reckless disregard of logic due to the lack of interest provided through the holding of cash.
But if one looks objectively and the true market fundamentals, it is clear to see that the stock market has blown into yet another bubble, except its total magnitude has been masked by the central bank's engineering of corporate earnings growth.
Thursday, April 17, 2014
When Corporate Earnings Disappoint In A Market Priced For Perfection / Companies / Corporate Earnings
By: John_Rubino
After today’s market close there was a flurry of earnings announcements, some of which were way low. Not bad, mind you. In fact they were pretty good. But because Wall Street analysts were expecting more in order to justify current stock prices, the disappointments led to big price declines in the aftermarket:
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Wednesday, March 19, 2014
Berkshire Hathaway: The Insurance Float & Intrinsic Value / Companies / Corporate Earnings
By: Rory_Gillen
Warren Buffett often says that he considers Berkshire Hathaway’s balance sheet value (or net asset value) to be just a convenient proxy for the intrinsic value of Berkshire’s shares, but that their intrinsic value is a good deal higher. Here, we explain what Buffett means by this statement, we provide a range estimate for their intrinsic value and we place into context Berkshire’s 2012 commitment to buy back shares at a 20% premium to net asset value (book value).
Friday, March 14, 2014
Corporate Capex Fallacies and Why You Shouldn’t Rely on CNBC / Companies / Corporate Earnings
By: F_F_Wiley
We get experts on everything that sound like they’re scientific experts … They’ll sit at a typewriter and make up all this stuff as if it’s science and then become an expert … Now, I might be quite wrong, maybe they do know all these things. But I don’t think I’m wrong. You see I have the advantage of having found out how hard it is to get to really know something … how easy it is to make mistakes and fool yourself. I know what it means to know something. And therefore, I see how they get their information and I can’t believe that they know it. They haven’t done the work necessary. They haven’t done the checks necessary. They haven’t done the care necessary … and they’re intimidating people. -Richard Feynman, Nobel Prize-winning physicist
Friday, February 14, 2014
TripAdvisor's Q4 2013 Corporate Earnings Review / Companies / Corporate Earnings
By: Submissions
Vikram Nagarkar writes: TripAdvisor (NASDAQ: TRIP), the online travel research company reported its Q4 2013 numbers post market hours at 5 P.M EST on the 11th of Feb 2014. Within minutes of the announcement, the stock price had plunged by close to 10%, eventually recovering and settling at $82.75, about 2% lower than the day’s closing price. We look at the key take-aways and TripAdvisor’s valuations post its Q4 2013 earnings release in which the company delivered many surprises, though not all of them were necessarily pleasant in nature.
Thursday, January 23, 2014
Weak Q1 Corporate Earnings to Finally Trip Up Illogical Stock Market / Stock-Markets / Corporate Earnings
By: DailyGainsLetter
John Paul Whitefoot writes: Stock markets are only as healthy as their stocks—well, at least they technically should be. But despite its stellar year in 2013, the S&P 500’s component stocks weren’t supporting the growth with strong revenue and earnings growth.
I might sound like a broken record, but the fact of the matter is that the S&P 500 was fuelled by the Federal Reserve and its $85.0-billion-a-month quantitative easing efforts and artificially low interest rates, and the fact that businesses were streamlining operations and implementing aggressive share repurchase programs.
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Sunday, January 19, 2014
Stocks 2014 - It’s All About Corproate Earnings / Stock-Markets / Corporate Earnings
By: John_Mauldin
Piloting on the Mississippi River was not work to me; it was play — delightful play, vigorous play, adventurous play – and I loved it… – Mark Twain
In the 1850s, flat-bottom paddlewheel steamboats coursed up and down the mighty Mississippi, opening up the Midwest to trade and travel. But it was treacherous travel. The current was constantly shifting the sandbars underneath the placid, smoothly rolling surface of the river. What was sufficient depth one week on a stretch of the river might become a treacherous sandbar the next, upon which a steamboat could run aground, perhaps even breaching the hull and sinking the ship. To prevent such a catastrophe, a crewman would throw a long rope with a lead weight at the end as far in front of the boat as possible (and thus the crewman was called the leadman). The rope was usually twenty-five fathoms long and was marked at increments of two, three, five, seven, ten, fifteen, seventeen and twenty fathoms. A fathom was originally the distance between a man's outstretched hands, but since this could be quite imprecise, it evolved to be six feet.
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Thursday, December 19, 2013
The Catastrophe Called Collapsing Corporate Earnings Growth / Companies / Corporate Earnings
By: Profit_Confidential
Michael Lombardi writes:
I keep telling you about my suspicion that the backbone of any stock market—corporate earnings growth—is disappearing. Now, we see it in the numbers…
Of the 106 companies in the S&P 500 that have issued corporate earnings guidance for the fourth quarter, an astounding 94 of them have issued negative guidance—that’s 89% of the companies issuing guidance, warning it will be negative, which is well above the five-year average rate of 63%. (Source: FactSet, December 13, 2013.)
Monday, October 28, 2013
What Caterpillar’s Big Drop in Earnings Means for the General Stock Market / Companies / Corporate Earnings
By: InvestmentContrarian
Sasha Cekerevac writes: With the S&P 500 hovering around its all-time highs, I think it’s quite interesting to read some of the latest corporate earnings reports and get a sense of what’s really happening in the global economy.
One of the most international companies within the S&P 500 is Caterpillar Inc. (NYSE/CAT). The firm recently released its third-quarter 2013 corporate earnings report, in which the firm poured some cold water on expectations. Revenue during the quarter was down 18% year-over-year, and corporate earnings were down 44% year-over-year. (Source: Caterpillar Inc., October 23, 2013.)
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Monday, October 28, 2013
Corporate Earnings Leadership Emerging in These Transport Stocks / Companies / Corporate Earnings
By: Profit_Confidential
Mitchell Clark, B.Comm writes: As more and more companies report, it’s apparent that quite a few are beating Wall Street consensus (usually either on revenues or earnings, rather than both), and it’s happening in industries where you want to see leadership.
What Wall Street consensus actually becomes is typically a well-managed dance between sell-side analysts and a company’s chief financial officer. Consensus estimates generally don’t mean very much in the way of real economic growth, which makes it all the more significant when you do see real growth.
Thursday, October 24, 2013
Tesco Bubble Bursts - Profits Crash As Big Spending Customers Quit Shopping on Poor Service / Companies / Corporate Earnings
By: Nadeem_Walayat
Tesco, Britains biggest super market has seen its profits crash by 23.5% to £1.39 billion for the 6 months to Sept 30th, surprising the markets and prompting many worried investors such as Warren Buffett to start existing their Tesco holdings (Buffet cut his holding near immediately by 1/5th) as clearly something is seriously going wrong at Tesco's resulting in competitors such as Sainsbury's winning market share away from Tesco, which illustrates that it's a lot quicker on the way down than it was on the way up!
Wednesday, October 23, 2013
Corporate Earnings Growth to Ramp Up? Call Me a Skeptic / Companies / Corporate Earnings
By: John_Mauldin
In today’s Outside the Box, Sheraz Mian, Director of Research for Zacks Investment Research, gives us an overview of corporate earnings trends for the past several quarters and consensus expectations going forward, and asks, “How realistic are these expectations?”
Not very, he says, and tells us why. This is the sort of thorough, no-nonsense analysis Zacks is famous for. Zacks Investment Research was founded in 1978 by Len Zacks, PhD. Many innovations have come from this firm over the years, including the creation of the Earningps Consensus that many investors use now to compare versus actual earnings reports. Most notably, Len discovered the predictive power of earnings estimate revisions. He harnessed these benefits into the proprietary Zacks Rank stock rating system that has allowed Zacks Rank to compile an outstanding track record.
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Tuesday, October 08, 2013
Expect Stormy Q3 Corporate Earnings Season as Washington’s Maelstrom Proceeds / Companies / Corporate Earnings
By: PhilStockWorld
“I am always doing that which I can not do, in order that I may learn how to do it.” -- Pablo Picasso
So now the fun really begins.
That is, if you consider fun the sort of thing that happens when Wall Street has way too much information to process in a very short period of time.
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Wednesday, October 02, 2013
What to Expect with 3Q Earnings: Little Growth, Lots of Cost-Cutting / Companies / Corporate Earnings
By: Profit_Confidential
Mitchell Clark writes:
In what can only be described as a repeat of so many earnings reports last quarter, Paychex, Inc. (PAYX) beat Wall Street consensus earnings but missed on revenues. It’s the same old story: very little real growth with strong cost-cutting padding earnings. The company’s full-year outlook remained unchanged.
In the 90s, Paychex was an outstanding wealth creator on the stock market, posting consistently strong revenue and earnings growth annually. For many companies, a business matures and competition becomes fierce. However, the payroll/benefits outsourcing business is a good one, even in a slow-growth economy. For Paychex, there still is top-line growth.
Thursday, September 26, 2013
What NIKE’s Earnings Could Reveal About This Proven Wealth Creator / Companies / Corporate Earnings
By: Profit_Confidential
Mitchell Clark writes:
One important company that reports its latest earnings this afternoon is NIKE, Inc. (NKE). This company is very good at making money for shareholders, and it should be on every long-term investor’s list to consider when it’s down on the stock market. NIKE has proven itself to be an excellent operator, even in the face of persistently slow economic growth.
Saturday, May 18, 2013
Stock Market Warning - 79% of S&P 500 Companies Issue Negative 2Q Earnings Guidance / Stock-Markets / Corporate Earnings
By: Profit_Confidential
Michael Lombardi writes:
The disconnect between the stock market and the U.S.economy continues to grow, as the key stock indices run way ahead of reality.
The fundamental reasons behind the rise in today’s key stock indices are missing. For a real rally to happen, there has to be rising demand in the U.S. economy, consumers must be confident to spend, and businesses should see their sales rising. None of this is taking place.
Tuesday, April 23, 2013
Three Non-Financial Measures That Reveal a Company’s Prospects / Companies / Corporate Earnings
By: DailyGainsLetter
Moe Zulfiqar writes: William Feather said it best: “One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.” (Source: BrainyQuote, last accessed April 18, 2013.) A buyer in the stock market usually believes that what they are buying will soar higher, while the sellers think there isn’t any more room to the upside and the stock is bound to go down.
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Tuesday, April 23, 2013
Corporate Earnings Results Ahead of the Economy, Day of Reckoning on the Horizon / Companies / Corporate Earnings
By: DailyGainsLetter
Mitchell Clark writes: Corporations are reporting a mixed bag this earnings season. Some companies are outperforming, while others have come in just a little bit short with their numbers.
The one thing I would say, however, is that the balance sheets continue to be outstanding, especially in large-cap companies. This gives a lot of leeway for corporations to weather any economic storm down the road.
Wednesday, April 17, 2013
Are Corporate Earnings Expectations Realistic? / Companies / Corporate Earnings
By: John_Mauldin
In today’s Outside the Box, Sheraz Mian, Director of Research for Zacks Investment Research, gives us a thorough overview of corporate earnings trends for the past several quarters, along with consensus expectations for this year and next. Then he asks, “How realistic are these expectations?”
Not very, he says, and proceeds to tell us why. If we accept his analysis – and he admits right up front that it runs counter to the consensus – then we should be asking ourselves, how does a potential falloff in earnings vs. expectations matter, and why is it important at this particular juncture? I’ll let Sheraz answer those questions, too – he does so convincingly – but I’ll just add that his analysis is a significant piece in the puzzle we’re all putting together here in this tipping-point year of 2013.
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Monday, March 11, 2013
Dow 14000: Why the US Economy Matters Less to US Corporations / Stock-Markets / Corporate Earnings
By: Keith_Hilden
A question remains on many people's minds regarding the US economy. Amidst a moribund recovery, stagnant job growth, lower household income, and US corporations being cash poor, how exactly can the stock market be reaching new all time highs?
It is precisely due to the fact that the stock price of US corporations are no longer dependent on strong domestic US performance to the degree that they previously were. Overseas profits continue to steadily amass over the decade as a higher percentage of revenues against their domestic US revenues. This needs to be understood in order to see why there is a Dow at an all time high. Cash poor in the US while cash rich abroad is due to corporations avoiding the repatriation of those profits due to a 35% penalty taxed upon those profits.
Saturday, February 09, 2013
Another Look at Corporate Cash Hoarding / Companies / Corporate Earnings
By: Andy_Sutton
With Graham Mehl… In the most recent copy of the St. Louis Fed’s ‘Regional Economist’, two of its researchers query the status of corporate cash. Specifically, they’re interested in why companies are hoarding so much of it. Normally, such an article wouldn’t be noteworthy, but in this case we feel that delving into such an issue will be of assistance in terms of helping the average person to understand the truly broken nature of our economic and monetary systems.
During the course of the article, the researchers pose what would be considered normally expected explanations for this pile up of cash: tax-avoidance, structural changes in the business environment, and even the cost of research and development. We don't doubt that these are probably among the subset of correct answers, perhaps with a few additions varying by particular fields. However, we found it much more interesting and instructive to ask where the cash came from than why it was being accumulated. The media, especially in America, has gone out of its way to portray a robust economic recovery. This would lead one to conclude that these piles of cash came from business activity. We’ll see if the data and trends validate that conclusion.
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Wednesday, January 16, 2013
Shiller PE Ratio Continues to Mislead Investors, S&P 500 Is Fairly Valued Early 2013 / Companies / Corporate Earnings
By: Charles_Carnevale
Allow me to start this article by emphatically stating that I have a real problem with forecasting stock markets in the general sense. Instead, I prefer to forecast the intrinsic values of individual businesses based on their earnings justified fundamental values. I hold this position because I believe that it is not only possible, but also quite practical to analyze a specific business and then make an intelligent forecast (not a guess) but a rational estimation, based on the assimilation of fundamental facts, as to its past, present and future intrinsic value. Importantly, I’m not suggesting this can be done with absolute perfect precision down to the precise penny, rather I am suggesting it can be done within a reasonable range of rational probabilities.
Monday, January 14, 2013
Q4 Corporate Earnings Season: Stocks Likely to Disappoint / Companies / Corporate Earnings
By: Money_Morning
Ben Gersten writes: The Q4 earnings season has started off on an unexpectedly good note.
Both Alcoa Inc. (NYSE: AA) and Wells Fargo & Co. (NYSE: WFC) last week reported fourth-quarter earnings that beat estimates.
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Monday, January 07, 2013
How the U.S. Economy Will Impact Corporate America / Economics / Corporate Earnings
By: InvestmentContrarian
George Leong writes: There has been so much focus on the fiscal cliff that I feel traders are ignoring the problems of slowing growth in corporate America.
The fourth-quarter earnings season begins tomorrow with Alcoa Inc. (NYSE/AA), the first DOW stock to report in this earnings season. Alcoa is one of the world’s top aluminum makers; the stock is also a good indicator for the global economy, as aluminum is used in many industrial applications, including aircraft, automobile, commercial transportation, packaging, building and construction, oil and gas, defense, consumer electronics, and industrial applications.
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Sunday, January 06, 2013
Corporate Earnings Disaster Setting Stocks Up for a Fall / Companies / Corporate Earnings
By: EconMatters
It is ironic that stocks are at five years highs going into what is probably going to be the biggest disappointment of an earning`s season since the 2008 financial crisis. We got a hint of 4th quarter results during the disaster which was the 3rd quarter earning`s season where most companies missed on the revenue side, and those that beat EPS guidance, did so barely, and most of that was created through stock buybacks and creative smoothing techniques.
Wednesday, December 12, 2012
What's the Best Use of Corporate Profit (cash)? / Companies / Corporate Earnings
By: Charles_Carnevale
I have recently authored two articles showing that, all other things being equal, a stock that pays its shareholders a dividend generates a higher total return than a stock with similar growth characteristics that doesn’t. This is based on the reality that stock prices follow earnings in the long run, and it is this relationship that generates the capital gain component of total return. Therefore, if there is a dividend it will provide the shareholder the additional return from the income component (dividends). Links to the articles can be found here and here.
Friday, September 21, 2012
Forget the Pessimists, theres Value in the Stock Market / Companies / Corporate Earnings
By: Charles_Carnevale
Whenever there is a rise in stock values as we have experienced over the past year or so, it seems to be human nature to automatically assume that valuations have become too high. However, although it is possible that this is true, it is not necessarily so. A lot has to do with where valuations were before the run-up occurred. For example, if valuations were extremely low, then even after a rise, they can continue to be low or perhaps only have risen to becoming fairly valued.
Sunday, September 09, 2012
Corporate Profits, Cash Flow, Dividends and Wages As Percent of GDP Since 1940s / Companies / Corporate Earnings
By: Richard_Shaw
These data from the St. Louis Federal Reserve represent the combination of private and public companies in the United States. The overall trend is that profits, cash flow and dividends are well above average levels, and wages are below average levels.
Wednesday, September 05, 2012
International Business Machines Corp (IBM) Stock Research Earnings Analysis / Companies / Corporate Earnings
By: Fast_Graphs
For those investors looking to add a blue-chip dividend growth stock to their portfolio might want to research further International Business Machines Corp (IBM) while it appears currently undervalued.
About International Business Machines Corp: Directly from Google Finance
"International Business Machines Corporation (IBM) is an information technology (IT) company. IBM's segments include Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists primarily of middleware and operating systems software. In January 9, 2012, IBM acquired Platform Computing. In January 11, 2012, it acquired Green Hat. In February 1, 2012, IBM acquired Emptoris Inc. In February 15, 2012, it acquired DemandTec Inc. In February 10, 2012, it completed the acquisition of Worklight. In May 2012, the Company acquired Varicent Software Incorporated. In May 2012, the Company acquired Vivisimo. In June 2012, the Company acquired Tealeaf Technology, Inc. On August 1, 2012, Toshiba Tec Corporation acquired the retail store solution business from IBM."
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Tuesday, August 28, 2012
Dell Shock Corporate Earnings Report / Companies / Corporate Earnings
By: InvestmentContrarian
The latest corporate earnings results from Dell Inc. (NASDAQ/DELL) were quite shocking, as the firm dramatically cut its full-year forecast. Technology stocks have always been under heavy competition, but it appears that Dell is losing its touch at driving corporate earnings growth rates.
Dell is fighting against a whole new level of technology stocks. Competition is coming not just from other PC makers, but now tablet makers as well. We’ve all seen the massive surge in “iPads” purchased from Apple Inc. (NASDAQ/AAPL) and this landscape of technology stocks encroaching into each other’s territory will continue.
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Saturday, August 04, 2012
Stock Market Corporate Earnings Cycle Analysis / Stock-Markets / Corporate Earnings
By: John_Mauldin
A few weeks ago, Ed Easterling and I updated the work we published almost ten years ago about secular bear and bull markets. This week I am in Maine at the annual Shadow Fed fishing trip (for those of us whose invitation to Jackson Hole keeps getting lost in the mail). Ed has graciously agreed to do another piece with me on the earnings, or business, cycle, which is different in timing than the secular stock market cycle but is part of the total warp and woof of the markets. When you combine them, you get a much clearer picture of the markets.
Tuesday, July 31, 2012
Protect Your Stocks Portfolio Against Wall Street's Greatest Lie / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes:"Can't anybody tell the truth anymore?" an exasperated Bob J. asked me at a recent cocktail reception.
"Evidently not" I told him.
Bob had seen me earlier that afternoon on Fox News. I appeared on the show to respond to a new study on corporate earnings by Professors Ilia Dichev, Shiva Rajgopal of Emory University and John Graham of Duke.
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Friday, July 13, 2012
Three U.S. Stocks to Keep an Eye on as Corporate Earnings Season Unfolds / Companies / Corporate Earnings
By: Money_Morning
Don Miller writes:
It's a proven fact -- stock prices eventually follow earnings.
So as we enter second-quarter earnings season, an avalanche of corporate reports will likely set the tone for the stock market for the next six weeks.
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Sunday, July 08, 2012
Into the Matrix of the Stocks Earnings Curve Effect Deflation / Stock-Markets / Corporate Earnings
By: John_Mauldin
What does the current environment of earnings and valuations tell us about the prospects for the US stock markets in general over the next 3-5-7-10 years? This week we have part two of "Bull's Eye Investing Ten Years Later," which we started last week. These two letters have been co-authored with Ed Easterling of Crestmont Research. We take a look at research we did almost ten years ago as part of my book Bull's Eye Investing, updating the data and asking,"Are we there yet? When will we get to the end of the secular bear market?" We will start with a few paragraphs from last week's letter and then move right along.
Friday, June 22, 2012
Corporate Earnings Growth Spotlight: Novartis AG / Companies / Corporate Earnings
By: John_Persinos
Swiss drugmaker Novartis AG (NVS) in April reported first-quarter 2012 earnings per share (EPS) of $1.27, down from the $1.4 posted a year earlier. First-quarter revenue fell to $13.7 billion from last year’s $14 billion. Earnings dropped 18 percent, to $2.3 billion.
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Friday, June 01, 2012
My Best Investment Advice - Watch Your Fellow Investors Then Do The Opposite / Companies / Corporate Earnings
By: Charles_Carnevale
In my opinion, the recent selloff in stocks defies commonsense and logic, but in truth and fact it usually does. In other words, it's not uncommon to see investors selling at precisely the time they should be buying and vice versa. Moreover, when investor pessimism is at a high, like it is today, stocks become cheap causing people to panic and sell. Of course, the more people sell the worse it gets and simultaneously the cheaper stocks get.
Tuesday, May 08, 2012
Baidu Inc: High Priced or Good Value to Buy? / Companies / Corporate Earnings
By: Fast_Graphs
Baidu Inc (BIDU) is most commonly referred to as the Chinese version of Google. Not unlike Google, Baidu Inc has generated an extraordinary record of earnings growth over its short history as a publicly traded company. Furthermore, even though Baidu Inc is trading at one of its lowest price earnings ratio as a public company it has still managed to provide shareholders with lavish returns. Finally, just like Google, the company's future earnings growth rate is expected to slow dramatically against the backdrop of its historical results. On the other hand, future earnings growth is still expected to be among the highest of any company you can find.
Wednesday, May 02, 2012
Corporate Earnings Don’t Always Reflect Expectations / InvestorEducation / Corporate Earnings
By: Ian_R_Campbell
If you participate in the financial markets directly or indirectly it is important that you understand the role earnings plays in acquisition analysis as contrasted with stock market analysis.
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Thursday, April 12, 2012
Stock Market Volatility Is Not Risk / Companies / Corporate Earnings
By: Charles_Carnevale
This article was inspired by Roger Nusbaum's post on his Random Roger blog - Sunday Morning Coffee on Sunday, April 8, 2012. Roger is a highly respected financial blogger that I believe is genuinely interested in providing his readers meaningful and prudent investment advice and guidance. Therefore, I have a great deal of respect for his work and intentions. On the other hand, Roger and I often disagree on certain investing principles, especially those that deal with asset allocation, proper diversification and the definition of risk. However, I would hope that he respects my differing views as being offered with the same best of intentions, as I see his offerings.
Wednesday, April 11, 2012
Crane Co: An Undervalued Dividend Challenger / Companies / Corporate Earnings
By: Fast_Graphs
Crane Co. (CR) is a diversified manufacturer of highly engineered products with over $2.5 billion in sales. Fluid Handling is their largest segment with $1.1 billion in sales, followed by Aerospace & Electronics with $6.78 million, followed by Merchandising Systems with $374 million, followed by Engineered Materials with $220 million, and finally Controls with $120 million. However, in spite of their diversified businesses, the historical earnings record of this high-quality Mid-cap suffers from periods of cyclicality (see earnings graph below). Therefore, even though the company has strung together seven consecutive years of dividend increases that qualify it as a Dividend Challenger, prospective investors should consider their past record of dividend freezes during cyclical times.
Thursday, April 05, 2012
CACI Stock - Growth at a Ridiculously Low Price / Companies / Corporate Earnings
By: Fast_Graphs
For 50 years CACI International Inc (CACI) has been serving America by providing in-demand services and solutions for our most vital missions for defense, intelligence, homeland security, and IT government modernization. Moreover, the company has consistently outgrown the government’s defense budget because of its emphasis on higher growth areas of government services needed to defend our country. Also, because of the sensitive nature of the services that are provided through contracts ranging from 3 to 5 years, we believe the company possesses a very strong moat. The majority of CACI’s employees hold high-security clearances that provide natural barriers to entry against outsiders attempting to impinge on their turf.
Thursday, March 29, 2012
The Truth About Corporate Earnings and How Forecasting Earnings is the Key to Success / Companies / Corporate Earnings
By: Charles_Carnevale
In part one of this two-part series on the importance of earnings I focused on the historical relationship between earnings and market price utilizing cyclical companies to illustrate the validity of my thesis. In this part two, I am going to focus on how since we learned from the past how important and highly correlated the earnings and price relationship is, that it only logically follows that future results will also be a function of future earnings achievements. Therefore, I confidently state that forecasting future earnings is the key to long-term investing success.
Wednesday, March 21, 2012
The Truth About Corporate Earnings and How They Drive Stock Values and Shareholder Returns / Companies / Corporate Earnings
By: Charles_Carnevale
I want to start this article out with the positioning statement, that I am a fundamental investor, and that I believe in conducting a comprehensive fundamental evaluation on any Company (common stock) that I buy, or for that matter, hold or sell. My own personal core investing philosophy is about investing in businesses and not the stock market. Consequently, it is only through a comprehensive analysis of the company’s fundamentals that the investment merits of an operating business can be analyzed and evaluated.
Tuesday, February 28, 2012
Is the Corporate Earnings Recovery a Deception? / Companies / Corporate Earnings
By: Clif_Droke
The market has come a long way since October when the price low was established in the major stock averages. It has come even further when compared to its March 2009 bear market low. To put the market recovery into perspective, for the three years since the recovery began in '09 until now, the S&P 500 (SPX) has gained over 100%. For the nearly two years since the July 2010 low, the SPX has gained 85%. For the six month's since last October's low, the SPX has gained 9%.
Friday, January 13, 2012
Why Weak Corporate Earnings Could Turn the Stock Market Bulls Loose / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes:
Everybody is hoping for a swell earnings season on the assumption that it will help the markets move higher.
However, if history is any guide, weaker earnings may be just what the doctor ordered.
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Thursday, December 29, 2011
The Top 10 Stock Market Myths Expose, Setting the Record Straight / InvestorEducation / Corporate Earnings
By: EWI
Not knowing the truth can be hazardous in just about any type of situation, but especially when it comes to your financial future.
To help you decipher market truth from myth, Elliott Wave International put together Market Myths Exposed, a free 33-page eBook that takes the 10 most dangerous investment myths head on and exposes the truth about each in a way every investor can understand. Originally published in 2009, it's still just as valuable as ever. Get your free eBook here.
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Friday, November 25, 2011
Netflix: When It Rains, It Pours / Companies / Corporate Earnings
By: EconMatters
Talk about bad things leading up to other bad things. Netflix stocks plunged yet another 8% to $68.50 on Nov. 23, two days after the company announced concurrent common equity and convertible notes financings totaling $400 million.
The company said it raised $200 million through the sale of about 2.86 million shares of common stock at a public offering price of $70 per share, for gross proceeds of $200 million, and raised $200 million through the private placement of convertible notes to funds affiliated with TCV, a private equity firm.
Tuesday, November 22, 2011
Buyback Fervor: Are CEOs Sending a Message to Investors? / Companies / Corporate Earnings
By: Dr_Jeff_Lewis
American businesses appear to be more confident than ever that their future is brighter than the market suggests. Now that stocks are on fire-sale, according to some investors, companies are buying at an adjusted valuation 15% lower than the start of the credit crisis.
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Thursday, November 03, 2011
Corporate Earnings: Stock Market's Brightest False Beacon / InvestorEducation / Corporate Earnings
By: EWI
Four times a year, investors and Wall Street watch the quarterly corporate earnings reports, trying to anticipate the trend in stocks. Another earnings season is upon us right now, so read this excerpt from our free Club EWI report, "Market Myths Exposed."
Friday, October 14, 2011
Corporations Are the Real Winners When it Comes to Free Trade Agreements / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes:
Whether the free trade agreements with Colombia, Panama and South Korea create jobs or destroy them is debatable, but one thing is sure: U.S. corporations will reap the most benefit from the deals.
After years of delay, the U.S. Congress on Wednesday approved the free trade agreements - the largest since 1994's North American Free Trade Agreement (NAFTA) - in a rare instance of bipartisan cooperation.
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Wednesday, July 27, 2011
Corporate Earnings Prove "Glocal" Companies are the Best Investments / Companies / Corporate Earnings
By: Money_Morning
Kerri Shannon writes:
The second-quarter earnings season has delivered some healthy activity, but the true standouts are the big U.S. companies that have learned to profit from emerging markets.
These are what Money Morning Chief Investment Strategist Keith Fitz-Gerald refers to as "glocal" companies - firms that have a global and local presence. And they offer investors a way to profit from emerging-market growth, while also safeguarding against turbulence at home.
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Saturday, July 09, 2011
Company Valuations, The Almighty Multiple / Companies / Corporate Earnings
By: Submissions
George Maniere writes: Yesterday my brother and I were having a conversation about how to value a company. We concluded that a company should not be valued on price but on the correlation of the P/E Multiple to the growth rate. So first me must understand and be able to figure out what the P/E Multiple is. The P/E Multiple can easily be expressed in the algebraic equation Price of the Stock (P) = The Earnings per Share (E) X the Multiple. Another way to express that is P/E = M. That seems pretty easy and clear but there is an important variable. The price of the stock is always changing. And this will chance the multiple accordingly.
Wednesday, June 22, 2011
Toyota Motor Corp. Won't Be Back on Track Any Time Soon / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes: Don't count on Toyota Motor Corp. (NYSE ADR: TM) to regain its place as the leader in global auto sales any time soon.
Because even though the company is ahead of schedule as it looks to bounce back from the horrible wave of disasters that engulfed Japan in the spring, it now faces another roadblock in the strengthening yen.
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Thursday, June 02, 2011
Corporate Earnings Will Follow The Economy – Down! / Stock-Markets / Corporate Earnings
By: Sy_Harding
There is no credible argument anymore that the U.S. economic recovery is intact and only running into a brief slow patch. And a significantly weaker economy cannot support current earnings forecasts. Those are appalling conditions for an overbought stock market.
Wall Street has yet to begin downgrading its S&P 500 earnings forecasts, and probably won’t begin to any degree until its unavoidable, a couple of weeks before 2nd quarter earnings reports begin coming out.
Tuesday, May 17, 2011
US Corporate Earnings Peaking - Shift into Defensive Growth Stocks / Stock-Markets / Corporate Earnings
By: Rory_Gillen
The recovery in global stock markets, which started in mid March 2009, is just over two years old. Many commentators feel that the recovery is illusory, based on cheap money from central banks and reckless fiscal spending by governments desperate to stave off recession and rising unemployment. Others see an improving global economy with the emerging markets as the new locomotive of world growth underpinned by rising populations, the urbanisation of China and India in particular and the consequent growth in emerging economy middle class incomes, which has brought some two billion consumers into the global economy.
Friday, April 29, 2011
Is it Downhill from Here for Buffett Berkshire Hathwaway? / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes:
The mood this weekend at Berkshire Hathaway Inc.'s (NYSE: BRK.A, BRK.B) annual shareholder meeting could be less festive than usual, darkened by a laundry list of concerns that includes mediocre returns and who eventually will succeed iconic Chief Executive Officer Warren Buffett.
Monday, April 25, 2011
American Airlines Has Nowhere to Go but Down / Companies / Corporate Earnings
By: Money_Morning
Jack Barnes writes:
In February, I made my case against United Continental Holdings Inc. (Nasdaq: UAL), - owner of both United Airlines and Continental Airlines - saying high fuel prices would be too much for the company to bear.
Well the same is true for AMR Corp. (NYSE: AMR), which is best known as the parent company of American Airlines - the fourth-largest airline in the world. The rising cost of fuel has put a squeeze on the company's margins, leaving it a hostage to higher oil prices.
So let's "Sell" AMR Corp. (**).
Thursday, April 21, 2011
Cloud Computing Helps Boosts Intel and IBM / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes: Better-than-expected earnings this week by several major technology vendors suggest a rebound is underway in corporate IT spending - much of which was postponed by the recession - and a big surge in cloud computing investments.
Intel Corporation (Nasdaq: INTC) reported a 34% rise in first-quarter profit due to strong sales of chips for high-end servers used in data centers in addition to a surprising increase in PC chip sales. And International Business Machines Corp. (NYSE: IBM) reported its highest revenue growth in a decade as businesses bought more servers and equipment for data centers.
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Wednesday, April 13, 2011
JP Morgan Q1 2011 Earnings / Companies / Corporate Earnings
By: Tony_Pallotta
On the headline JP Morgan (JPM) beat with $1.28 versus estimates of $1.15 on EPS. Comparing Q1 2011 to Q1 2010 net revenues is down 8.8% while EPS is up 72%.
Sounds OK unless you ask two very simple questions (1) what is the direction of income before provisions for loan losses and (2) what is the direction of asset prices.
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Friday, April 01, 2011
Strong Corporate Earnings Mean a Strong Stock Market, Right? / Stock-Markets / Corporate Earnings
By: EWI
Earnings season is upon us, so it's a good time to delve into how earnings affect stock prices. Here's an excerpt from Bob Prechter's February 2010 Elliott Wave Theorist. It considers the conventional belief in a cause/effect relationship between earnings and stock prices. EWI's 50-page Independent Investor eBook includes the entire report on the effect 10 different economic events, political events, and monetary and fiscal policies have on the market. You can download it now for free.
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Wednesday, March 23, 2011
Corporate Tax Holiday Could Put $1.2 Trillion in Shareholders' Pockets / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes:
Lawmakers in Washington are mulling a one-time corporate tax holiday on foreign earnings that could provide a bonanza to many U.S. multinational corporations.
If enacted, the holiday would allow U.S. corporations to bring home $1.2 trillion in profits they have stashed overseas at a much lower rate - about 5% as compared to the usual 35%.
Read full article... Read full article...
Thursday, March 17, 2011
Get Ready For The Coming Stock Price Tsunami / Stock-Markets / Corporate Earnings
By: Dian_L_Chu
Vitaliy N. Katsenelson writes: Profit margins are a tick away from all-time highs and are creating the impression of cheap equity valuations. But that impression is a mirage, because today’s generous margins are destined to shrink.
I first wrote about this in January 2008. Stocks are allegedly cheap now, at 15.7 times 2010 earnings. And they are cheap by historical standards. Only 10 years ago, their price/earnings ratios were double today’s; they are even cheaper if you compare their forward (2011) earnings yield of 7.3% to the 10-year Treasury yield of 3.40%. They are cheap, cheap, cheap!
Read full article... Read full article...
Tuesday, March 01, 2011
Exxon Mobil and Other Large-Cap Leaders Will Continue to Motivate the Stock Market / Companies / Corporate Earnings
By: Money_Morning
Jon D. Markman writes:
The trends that are established at the start of the year often persist through yearend.
That makes now - the first day of March - a good time to look at the unique trends that have characterized the first few months of 2011 and hazard a guess as to whether or not this bull market will keep running.
Read full article... Read full article...
Wednesday, February 16, 2011
Will Egypt End the "Obama Arms Bazaar?" / Companies / Corporate Earnings
By: Money_Morning
Keith Fitz-Gerald writes: While many investors are focused on the roles that Google Inc. (Nasdaq: GOOG) and Twitter played during Egypt's recent turmoil, I immediately zeroed in on all the American-made military hardware that exists in that region - and began to analyze the risk that investors face if the U.S. defense industry quite literally bet on the wrong horse.
Sunday, February 13, 2011
Russian Banks Earned Record Profits in 2010 / Companies / Corporate Earnings
By: Pravda
2010 was a successful year for Russian banks. Their profit in 2010 made up 573.4 billion rubles, which was three times as much as in 2009. Experts believe that such a growth has been achieved owing to the recovery of the reserves created during the crisis. Nevertheless, banks continue to accumulate reserves for their further work in 2011.
Read full article... Read full article...
Tuesday, January 25, 2011
Food Prices Hurting McDonald’s, but Not This Stock / Companies / Corporate Earnings
By: Jared_Levy
If you have been reading Smart Investing Daily, you know that food trends, demand and subsequent food inflation have been on our radar (and trade ideas) for some time, including my Thanksgiving notes as well as my concerns here in early October.
Tuesday, January 25, 2011
2011 Corporate Earnings Off to a Strong Start, but Will it Last? / Companies / Corporate Earnings
By: Money_Morning
David Zeiler writes:
Earnings season is well underway and the trend so far has been mostly positive. But as 2011 progresses, companies will be less and less likely to meet - much less surpass - Wall Street's lofty expectations.
That's because high unemployment, tight credit, an inability to further reduce cost structure and less favorable comparisons to 2010 will conspire to trip up the less nimble corporations.
Read full article... Read full article...
Tuesday, October 19, 2010
Banking Giants Goldman Sachs and Morgan Stanley To See Revenues Decline / Companies / Corporate Earnings
By: Money_Morning
Citigroup Inc. (NYSE: C) spurred a big run in financial stocks yesterday (Monday) after the commercial-banking giant beat Wall Street estimates by reporting a huge surge in quarterly profits.
Don't expect the same exuberant response to U.S. investment bank earnings reports.
Read full article... Read full article...
Monday, September 06, 2010
China Agritech: Dominating a Multibillion-Dollar Market / Companies / Corporate Earnings
By: Investment_U
Alexander Moschina writes: You probably remember the agri-boom a few years back.
As grain prices rose to astronomical figures, it triggered an increase in food prices across the board.
Read full article... Read full article...
Wednesday, August 25, 2010
Barron's Is Wrong On Medtronic / Companies / Corporate Earnings
By: Vitaliy_Katsenelson
I love Barron’s. I really do. I read it from cover to cover, and I truly believe it is one of the few business publications that knows the difference between a good company and a good stock. Now that I’ve sugared it up, let me tell you this: its article on Medtronic is wrong! Here are some arguments the Barron’s article made that require my rebuttal:Read full article... Read full article...
Friday, August 13, 2010
The Supply Chain Strain Is Changing the Way Manufacturers Do Business / Companies / Corporate Earnings
By: Money_Morning
Kerri Shannon writes: As growing demand boosts production in the second half of 2010, some companies will fail to meet output due to struggles in the supply chain.
Earnings season has shown industrial companies' surging profits in the first half of the year and increased optimism for the months to come. Emerging market strength and stable raw material prices have helped the manufacturing boost.
Read full article... Read full article...
Monday, August 09, 2010
JPMorgan's Losses From Indecent Overexposure / Companies / Corporate Earnings
By: Janet_Tavakoli
JPMorgan Chase's fixed-income revenue fell almost 28% to $3.6 billion in the second quarter, down from $5.5 billion in the first quarter, and down from $4.9 billion for the same period last year. JPMorgan blamed an interest rate squeeze and bad results in the credit markets and the commodities markets.
Saturday, July 24, 2010
Why Currencies Play an Important Role in Corporate Earnings / Companies / Corporate Earnings
By: Bryan_Rich
It’s earnings season. And more and more companies are talking about currencies.
The headlines read like this …
“Weak Euro a Drain on S&P 500 Revenues”
Read full article... Read full article...
Monday, July 19, 2010
Why Upbeat Corporate Earnings Reports Mean Caution For Stock Market Investors / Companies / Corporate Earnings
By: Money_Morning
Jon D. Markman writes: While earnings reports continue to pour out each day, investors should be careful before being excitedly swayed by strong financials - there is much more of the big picture to consider.
Stocks failed to get traction in the middle of last week after Alcoa (NYSE: AA) and Intel (Nasdaq: INTC) earnings reports underwhelmed investors, and Friday they spun off the road. The culprit: Fears that recent earnings gains represented a peak, and that weak readings on the economy were more representative of current conditions.
Read full article... Read full article...
Monday, July 19, 2010
Five Reasons for Nonsensical Forward Corporate Earnings Estimates / Companies / Corporate Earnings
By: Mike_Shedlock
Forward S&P 500 earnings estimates are outrageously optimistic as noted in Hussman on Misallocating Resources, Market Valuations, Earnings Estimates, and Public Policy.
The above link addresses what is happening. This post will address the reasons why.
Saturday, July 17, 2010
Stocks Tumble as Banks, G.E. Trail Revenue Earnings Estimates / Stock-Markets / Corporate Earnings
By: JD_Rosendahl
Friday was an eventful day in the stock market: Stocks Tumble as Banks, GE Trail Revenue Estimates. Markets hate uncertainty and disappointment, and Friday the stock market took a Hay Maker to the kisser, POW.
U.S. stocks slid, wiping out a weekly advance, as revenue at Bank of America Corp., Citigroup Inc. and General Electric Co. missed analyst estimates and a gauge of consumer confidence slid to the lowest in a year.
Read full article... Read full article...
Thursday, July 15, 2010
Stock Market Corporate Earnings Forecasts For 2011 Wariness / Stock-Markets / Corporate Earnings
By: Richard_Shaw
Looking past the initial upbeat Q2 earnings reports, and discounting the optimistic $90+ S&P 500 operating earnings forecasts for 2011, we feel a nagging wariness about 2011 (just 6 months away).
That wariness is based on the enormous tax effect in January, along with the, by then, rising awareness of further tax hikes in subsequent years for national healthcare; and concern about the AMT capturing more families. Those are just federal taxes in the US, but state and local taxes are rising too; and tax rates are or must rise in other indebted countries as well. On top of all that is the backdrop of eventual stimulus withdrawal.
Read full article... Read full article...
Wednesday, July 14, 2010
Corporate Earnings Season Optimism... / Stock-Markets / Corporate Earnings
By: Mark_McMillan
Trade Recommendations: Take no action.
Daily Trend Indications:
Wednesday, July 14, 2010
Alcoa Earnings Surprise is Positive News for Global Economic Recovery / Companies / Corporate Earnings
By: Money_Morning
Don Miller writes:
When Alcoa Inc. (NYSE: AA) kicked off earnings season on Monday by soundly beating analysts' expectations, it flashed positive signals for the company and, more importantly, the entire global economic recovery.
The aluminum giant swung from a loss of $0.26 in the same quarter last year to a gain of $0.13 per share, exceeding by 18% the 11-cent average estimate of 17 analysts surveyed by Bloomberg News.
Read full article... Read full article...
Wednesday, April 28, 2010
S&P 500 Corporate Earnings Beating Estimates / Stock-Markets / Corporate Earnings
By: Hans_Wagner
To the surprise of many, the first quarter 2010 earnings for many S&P 500 companies are beating estimates, some substantially. If this is an indication of greater strength in the economy, does this mean the market rally will continue?
Analysts are behind the curve in raising their earnings estimates during the recovery. For example, over the last year quarterly earnings has surprised to the upside between 6 and 13 percent according to Thompson Reuters.
Read full article... Read full article...
Tuesday, April 27, 2010
Early Corporate Earnings Season Indicators Looking Good … / Stock-Markets / Corporate Earnings
By: Nilus_Mattive
Yet another earnings season is upon us, and so far things are looking good.
For example, through the middle of last week about 85 stocks in the S&P 500 (worth 26 percent of the index’s total value) had reported their results. And all told, 82 percent of those companies had beaten Wall Street’s estimates. Their aggregate results also represented a 5 percent gain over results during the same quarter last year.
Read full article... Read full article...
Monday, April 26, 2010
Mega Corporate Earnings Monday, 1000 Reports This Week! / Stock-Markets / Corporate Earnings
By: PhilStockWorld
What a crazy week this is going to be!
Pre-Market we’re hearing from BLK, CAT (are we building stuff?), EXP, HTZ, HUM, LO, TUES and TZOO and later we will hear from BSX, CHH, OLN, RSH, RCII, TXN (major) and my "friendbuddypal" Cramer’s TSCM (if they are not delayed). Revenues at The Street have crept back up this year in a recovery that pretty much mirrors the market.
Thursday, April 15, 2010
JPMorgan Posts Big Gains but Financial Reform Threatens Profitability / Companies / Corporate Earnings
By: Money_Morning
Kerri Shannon writes: JPMorgan Chase & Co. (NYSE: JPM) posted a 55% rise in first-quarter net income led by fixed-income trading and investment banking. But to ensure its profits remain in tact, the bank continues to fight against proposed financial reform.
Monday, March 22, 2010
Fastest Economic Recovery Ever Could Push Corporate Profits to Record Highs 2010 / Stock-Markets / Corporate Earnings
By: Money_Morning
Jon D. Markman writes: Sometimes we get a little carried away talking about esoteric subjects like bulls, bears, supply, demand, moving averages and the like. But if you just want to focus on something real, then look at corporate profits. When they're rising from a low, that's good; when they're flat-lining or declining, that's bad. Pretty simple.
Thursday, January 14, 2010
INTC/JPM On Deck... / Companies / Corporate Earnings
By: Jack_Steiman
The market has continued to move higher day after day in a slow grinding manner that is never on the nerves. As we move higher the moves up get smaller and smaller but they're still up moves. the question now becomes, can the market continue this grind higher or will it get stopped cold! The answer is likely in the earnings season that is truly upon us now. Intel (INTC) is huge as it is a major economic indicator as its chips are in everything. The news just came out and they blew away the numbers and it is somewhat higher after hours. Up 2-3% on top of nice gains during the day. It's on breakout if this holds and that can only be good for the markets.
Read full article... Read full article...
Tuesday, January 12, 2010
Let The Corporate Earnings Season Begin... / Companies / Corporate Earnings
By: Jack_Steiman
We've had some good earnings reports prior to this evening but when Alcoa Inc. (AA) reports, that's the official kick off to the earnings season. There have been some great reports and some not so great reports thus far but all in all it has been pretty good. Of course, they're good based on lowered expectations but we have to adjust to how the market sees things, not how our hearts and minds see them.
Read full article... Read full article...
Thursday, October 29, 2009
Wyndham Worldwide (WYN) Beats, Raises Guidance / Companies / Corporate Earnings
By: Trader_Mark
Wyndham Worldwide (WYN) reported Tuesday evening, we did not have time to discuss it yesterday due many other activities happening. This hotel chain continues to be one of our best performers of the year and as I say in almost every update on the name ... it is STILL cheap. As I'm looking at the chart now the action the past 48 hours allowed the stock to fill a gap, and I'm smacking myself in the head because I completely missed an opportunity to add. Unlike many other names, the stock was able to fill a gap but stay over key moving averages...
Read full article... Read full article...
Saturday, October 17, 2009
Bank of America Losses Fuel Stock Market Selloff / Companies / Corporate Earnings
By: BrewerFuturesGroup
U.S. equity markets are tumbling this morning after Bank of America reported a loss and General Electric posted less than stellar results. Failed loans at Bank of America triggered the loss which served as a reminder that some U.S. consumers and businesses are having a hard time paying back debt.
Read full article... Read full article...
Friday, October 16, 2009
Nokia Reports Quarterly Losses for the First Time in 10 Years / Companies / Corporate Earnings
By: Pravda
Nokia, the largest maker of mobile phones, said Thursday that it suffered quarterly losses of 559 million EUR for the first time in ten years. The Finnish company reported a 20 percent reduction in sales. The company's share price plummeted 6.6 percent to 9.62 EUR ($14.32) in Helsinki.
Read full article... Read full article...
Wednesday, October 14, 2009
Earnings to Impact Stock Market Trend / Stock-Markets / Corporate Earnings
By: Jack_Steiman
Tis the season folks. Will we have Santa or the Grinch. As we sit in this annoying 1060 to 1080 S&P 500 gap we are wondering if it will ever break out or will it simply fail and ultimately break down. We are going to get our answer very soon. Tonight the real earnings season begins. No more Alcoa's (AA) but the real deal economy stocks are here for review. There's a lot of good news built in thus these stocks better say some real good things or they will get hit. They need to beat on earnings and revenues and do it with real sales and not cost cutting. That will no longer work with their stock prices up 100% or more in many cases.
Read full article... Read full article...
Monday, October 12, 2009
Oh Goldman Sachs / Companies / Corporate Earnings
By: Danny_Schechter
Daily Finance.com: “Goldman Sachs Group Inc. (GS) faces a gargantuan public relations headache when it reports third quarter results Wednesday. Investors will be angry if the New York-based bank fails to hit Wall Street's consensus of earnings of $4.24 per share on revenue of $11.02 billion, or if it does not give bullish enough guidance. The Obama administration and members of Congress, on the other hand, will be furious if Goldman Sachs' earnings are too good. …. Legal challenges are possible from bankers as government pay czar Kenneth Feinberg reviews the practices of banks that have received bailouts.
Read full article... Read full article...
Tuesday, September 08, 2009
Intel Corp. (Nasdaq: INTC) Is Poised to Top Earnings Estimates Over the Next Two Quarters / Companies / Corporate Earnings
By: Money_Morning
Horacio Marquez writes: Intel Corp. (Nasdaq: INTC) is a cyclical company. That is, its stock does extremely well when the economy is ready to accelerate, and does poorly when the economy decelerates. So it's no wonder that last year the stock fell more than 50% from the record-high of $27.78 a share it reached December 2007. However, the company has rallied more than 50% from its Feb. 23 low of $12.08 a share. It closed Friday at $19.64.
Friday, August 14, 2009
Corporate Earnings Are a Load of Nonsense / Companies / Corporate Earnings
By: Graham_Summers
Earnings season has always been a crapshoot largely because of the nature of our financial system. To whit, we have accountants whose jobs consist entirely of finding ways to minimize taxes and eek out profits from even the flimsiest of circumstances (financial firms have become masters of this).
Wednesday, August 05, 2009
How Are Corporate Earnings Beating Estimates on Lower Sales? / Companies / Corporate Earnings
By: Marty_Chenard
It is now August. Many are guessing that the 4th. Quarter will see a positive GDP number this year. The market appears to be factoring in that possibility. Will it really be possible to generate a positive GDP?
Thursday, July 30, 2009
These Corporate Earnings Results are Cause for Celebration?!?! / Companies / Corporate Earnings
By: Graham_Summers
With Wall Street clamoring about how great earnings are, it’s worth our time to examine the REAL Year over Year (YoY) results for economic bell-weathers. After all, beating an estimate that set so low that an earthworm could clear it is hardly grounds for a celebration. And Wall Street analysts hardly have a reputation for nailing earnings.
Wednesday, July 29, 2009
Are Better than Expected Corporate Earnings Results Good? / Stock-Markets / Corporate Earnings
By: Paul_J_Nolte
When you expect a failing grade, but just past that math class, is that “better than expected” necessarily good? Evidently on Wall Street, limping over the very low “expectations” hurdle has been enough to push stocks up and over to be solidly higher for the year. In the rear view mirror are now the market lows for this cycle, the worst economic collapse in a few generations and the broken banking system.
Read full article... Read full article...
Saturday, July 25, 2009
How Currencies Impact Corporate Earnings / Companies / Corporate Earnings
By: Money_and_Markets
Bryan Rich writes: It’s earnings season. And more and more companies are talking about currencies.
The headlines read like this …
Read full article... Read full article...
Tuesday, July 21, 2009
Making Sense of Second-Quarter Corporate Earnings So Far / Companies / Corporate Earnings
By: Money_and_Markets
Nilus Mattive writes: As a stock guy, I keep a close eye on earnings releases … not just on the companies that I follow for Dividend Superstars, but across all sectors and industries.
That’s because earnings results are an important yardstick for sizing up the overall health of the stock markets and the underlying economy.
Read full article... Read full article...
Tuesday, July 14, 2009
Goldman Sachs Expected to Post “Blowout” Quarter Amid Run of Lackluster Corporate Profit Reports / Companies / Corporate Earnings
By: Money_Morning
Staff Report: The shrewdest U.S. investors understand that future profits will come from overseas.
But Goldman Sachs Group Inc. (NYSE: GS) is apparently getting those profits now.
Wednesday, July 01, 2009
Investors Buying into a Stock Market with Falling Corporate Earnings / Stock-Markets / Corporate Earnings
By: John_Browne
Through its rhetoric and actions, the Obama Administration has made it clear that no matter the current or future costs, the federal government will not allow a collapse of the banking system. The resulting aura of certitude has, in turn, encouraged investors to roll the dice one more time. Some of these investors are likely trying to make good prior investment losses through speculative trading in U.S. equities. The surety of the government guarantee has sadly allowed them to overlook the fact that U.S. corporate earnings continue to fall.
Friday, May 15, 2009
Wal-mart Struggles Sign of Economic Recovery? / Companies / Corporate Earnings
By: LiveCharts
This week has been known as the retail earnings reports week on Wall Street as many top retailers have reported earnings already this week. With a mixed bag of earnings and compiled data still showing struggles in retail sales, it is tough to figure out what direction retailers are providing for the economy and investors.
Read full article... Read full article...
Sunday, April 26, 2009
E-tailers Share Mixed Corporate Earnings Reports / Companies / Corporate Earnings
By: LiveCharts
While earnings in the credit sector have garnered much of the attention the last couple weeks, there have been several important earnings announcements from some big name online-only retailers. The results so far have been mixed with some companies apparently weathering the economic storm, and others suffering along with brick-and-mortars stores and multi-channel retailers during the downturn.
Read full article... Read full article...
Thursday, April 23, 2009
Where are the S&P 500 Corporate Earnings Expectations / Stock-Markets / Corporate Earnings
By: Hans_Wagner
Much of the recent rally in the stock market can be attributed to higher earnings expectations in the S&P 500 from an economy that is performing less badly than earlier. Does this justify the 29% rise in the S&P 500 over the last six weeks? Moreover, can this move up sustain itself and keep climbing, or at least find a plateau. Part of the answer to this question lies whether earnings expectations will be sufficient to support the current level of the S&P 500, let along a rising market?
Monday, April 20, 2009
This Weeks Corporate Earnings Will Impact on Stock Market Trend / Companies / Corporate Earnings
By: Money_Morning
William Patalon III writes: it comes to the U.S. stock market right now, the story continues to be about earnings. And this week will be no exception. Bank of America Corp. (BAC), which reports today (Monday), remains among the last financials of note that has yet to announce its first-quarter performance, and the big bank figures to get a lot of attention as investors look to see how well Merrill Lynch & Co. Inc. (formerly known as “The Bull”) and Countrywide Financial Corp. have fit into the BofA family fold.
Sunday, March 01, 2009
Warren Buffet's Bubble Bursts as Berkshire Profits Collapse / Companies / Corporate Earnings
By: Mike_Shedlock
Bloomberg is reporting Berkshire Profit Plunges 96% on Stock Market Bets . Warren Buffett's Berkshire Hathaway Inc. posted a fifth-straight profit drop, the longest streak of quarterly declines in at least 17 years, on losses from derivative bets tied to stock markets. Read full article... Read full article...
Thursday, February 19, 2009
Corporate Goodwill, the Next Big Write-off / Companies / Corporate Earnings
By: Hans_Wagner
Corporate earnings are in a tailspin, falling to new lows as we have seen in the latest quarterly reports. As sales falter, companies scramble to shore up their financial statements. Writing off assets is becoming more commonplace. Those companies that have large amounts of goodwill on their books are encountering additional review. Read full article... Read full article...
Monday, January 26, 2009
Corporate Earnings to Drive This Weeks Stock Market Trend / Stock-Markets / Corporate Earnings
By: PaddyPowerTrader
Equity markets remain wary and soft with earnings (or the lack of them) remaining the focus. This week, 137 companies from the S&P 500 are reporting earnings results , including 12 Dow Jones components. American Express (expected EPS $0.22), Caterpillar ($1.31), Texas Instruments ($0.12) and McDonalds ($0.83) are due today. With earnings per share (EPS) expectations this low, it hammers home the point that the pain has spread beyond the banking system and that we have entered a synchronized slowdown globally. So just another manic Monday in prospect then. Read full article... Read full article...
Saturday, January 24, 2009
Stock Market Grinding Volatility due to Good and Bad Corporate Earnings / Stock-Markets / Corporate Earnings
By: Jack_Steiman
The market gapped down on bad earnings from General Electric (NYSE: GE), even though Google (NASDAQ: GOOG) was rewarded for their earnings report. One good and one bad just like the other day when Apple (NASDAQ: AAPL) was good and Microsoft (NASDAQ: MSFT) was bad. We gapped down and ran only to have the usual strong reversal back up. We fell again and basically tested the days lows and then fired on up. We got very close to that super important 805 support level when the bulls kicked things in and ran it back up thus saving a fast move down to the old lows at 775 Sp. From there it was slow erosion back down but did close green on the Sp and Nas. Read full article... Read full article...
Wednesday, January 21, 2009
Economic Failure and Corporate Earnings Collapse / Economics / Corporate Earnings
By: Oxbury_Research
"A massive paradigm shift away from everything we have known for all our lives to something we have read about in history books, with numerous twists; history never repeats itself but many times rhymes. As we have watched the credit crisis unfold over the last 2 years most peoples' lives have been largely unaffected as residual momentum and habits built up over decades haves crested and reversed, but now the slippery slope downward is set to accelerate VISCIOSLY." -Ty Andros Read full article... Read full article...
Tuesday, October 28, 2008
Wolfe Wave Corporate Earnings Contraction Well Underway / Stock-Markets / Corporate Earnings
By: Ty_Andros
We are nearing the first crescendo of the unfolding Crack-up Boom. As outlined in the 2008 outlook entitled “Wolf Wave, aka Thrill ride” the markets are set to experience an emotional and financial EXPLOSION. A coming explosion outlined many times since the April 2007 Tedbits “Fingers of Instability” series first identified the WOLFE wave. Those predictions have since materialized in a grander manner then I ever could have anticipated. Read full article... Read full article...
Monday, October 27, 2008
Economic Data and Corporate Earnings Signaling Global Recession? / Economics / Corporate Earnings
By: Money_Morning
William Patalon III writes: It's beginning to sound like a broken record. In a nutshell, we already know that the economic data should be weak. We already know that the earnings reports should be disappointing. And because we already know all this, the information should be built into stock prices. The earnings releases should be soft. That much should already be known – and built into the markets.Read full article... Read full article...
Tuesday, September 30, 2008
Valuing Cyclical Companies by Using the Price/Sales Ratio / InvestorEducation / Corporate Earnings
By: James_Foye
The price/sales multiples is one of the most often quoted investment valuation ratios. Even the legendary James O'Shaughnessy is not immune to the ratio's charms; he even went as far as to call it “the king of the value factors”. I've always found the ratio's popularity strange as the measure is dangerously flawed.Read full article... Read full article...
Monday, August 04, 2008
Get Ready for the Corporate Earnings Meltdown / Companies / Corporate Earnings
By: Mike_Stathis
I'm not talking about the banks or even the retailers. We all know they will continue to slide. I'm talking about everything else. With no real median wage growth since 1999, and soaring inflation for gas, food and healthcare, it's obvious consumers have had much less to spend. Not only has that hurt savings rates (including retirement contributions) but it's also affected consumer spending. But don't expect things to get better by Fall. In fact, I'm expecting the earnings meltdown to begin for much of the remaining sectors in the S&P 500.Read full article... Read full article...
Tuesday, July 29, 2008
Contracting S&P 500 Corporate Earnings Confirm US Recession / Economics / Corporate Earnings
By: Paul_L_Kasriel
Are we in a recession or are we not? The debate goes on. Take a look at the year-over-year change in operating profits of the S&P 500 corporations (see Chart 1). Profits have declined for three consecutive quarters through the first quarter of this year. Given reports of second-quarter profits to date and estimates of those corporate profits to be reported, it is a good bet that year-over-year profits will be down for four consecutive quarters. Read full article... Read full article...
Saturday, July 26, 2008
Stocks Bear Market Fed by Falling Earnings Expectations / Stock-Markets / Corporate Earnings
By: John_Mauldin
- Earnings and Mr. Bear
- Earnings Before Bad Stuff
- How Ugly Can it Get?
- A Lean Mean Reversion Machine
- Some Thoughts on Energy
"The stock market is a voting machine in the short run and a weighing machine in the long run." - Benjamin Graham
The voting part of the equation is tempered by fear and greed. It is largely emotional, although investors like to think of themselves as rational players. That emotion is driven by views of the future. If you can be confident of large and growing returns, you are less likely to be swayed by the erratic movements of a stock. But as confidence wanes? Well, that is the stuff that bear markets are made of.
Read full article... Read full article...
Thursday, July 24, 2008
Cash Rich Non-US Companies Trading in the US / Companies / Corporate Earnings
By: Richard_Shaw
In this time of difficult credit conditions, it could make sense to evaluate companies with plenty of cash. One way to measure cash is to subtract all liabilities and see if there is any cash left (Net Cash).
If a company has Net Cash, they could pay off any and all debts and other reported liabilities, and have money left over.
Read full article... Read full article...
Monday, July 21, 2008
Investors Look to Earnings Season for Stock Market Trend / Companies / Corporate Earnings
By: Money_Morning
William Patalon III writes:Earnings season will plug along this week as reports from several banks provide the latest insight into how well the beleaguered financial-services sector is weathering the global credit-crisis storm.
Among the earnings season headlines: Bank of America Corp. ( BAC ) will be issuing its final earnings report of the pre- Countrywide Financial Corp. (CFC) merger era and investors hope that Wachovia Corp. ( WB ) follows in the recent footsteps of Citigroup Inc. ( C ) and JP Morgan's Chase & Co. ( JPM ), the latter two of which both provided better-than-expected (though certainly negative) results.
Read full article... Read full article...
Monday, July 07, 2008
Earnings Season Again, Watch the Multinationals for Stock Market Trend / Companies / Corporate Earnings
By: William_Patalon_III
Can it be earnings season already?
It sure is, but don't expect too much. With its report tomorrow (Tuesday), Alcoa Inc. ( AA ) leads off what is expected to be a pretty dismal series of profit reports. Thomson Reuters now estimates that second-quarter earnings declined by 11.1%, which is significantly worse than the projected 2% decline that was made back in April.
Read full article... Read full article...
Wednesday, July 02, 2008
Marks & Spencer Shares Crash on Real Retail Sales Slump / Companies / Corporate Earnings
By: Nadeem_Walayat
Marks & Spencer's share price crashed by 25% today following announcement of a sharp drop in sales of 5.3% for the second quarter. The slump in sales translates into a sharp fall in profits for the same period that defies the retail sales statistics released for May 2008. M&S earnings could fall by as much as 1/3rd for the current financial year on existing expectations of £900 million, as consumers continue to cut back on spending in the face of loss of household equity, increased debt servicing costs and higher energy and food costs.Read full article... Read full article...
Wednesday, June 25, 2008
Wallstreet Cheerleaders Will Eventually Face Reality / Stock-Markets / Corporate Earnings
By: John_Browne
When listening to the typical, television-based, Wall Street cheerleader work themselves up into a bull market frenzy, one is tempted to wonder if they ever bother to compare the movie that is rolling along in their heads to the one that is occurring in the outside world. Perhaps for those living in a media bubble, the only reality that matters is the one reflected in the camera lens.Read full article... Read full article...
Monday, May 05, 2008
Final Verdict on First Quarter Earnings Season / Companies / Corporate Earnings
By: William_Patalon_III
With earnings season starting to wind down, investors are not anticipating many new surprises. Still, a few prominent players are set to report this week led by The Walt Disney Co. ( DIS ) (entertainment), Cisco Systems Inc. ( CSCO ) (tech), and American International Group Inc. ( AIG ) (financial services).
The Microsoft Corp. ( MSFT ) / Yahoo Inc. ( YHOO ) (and occasionally Google Inc. ( GOOG ) ) soap opera will be worth watching - if only to make sure that Microsoft's withdrawal isn't a cover ploy for a hostile run at Yahoo [ For a related news story in this issue of Money Morning that details Microsoft's decision drop its pursuit of Yahoo , please click here ].
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Tuesday, April 22, 2008
Earnings Reports Contain Interesting and Troubling Economic Messages / Companies / Corporate Earnings
By: John_Browne
Last week, as the corporate “earnings season” got underway and some 30 percent of S&P 500 firms reported their results from the first quarter of 2008, investors seized on any shred of positive news in the first wave of reports and sent share prices surging.
Looking beyond this first blush euphoria, the reports do contain some very interesting, and troubling, economic messages.
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Tuesday, April 15, 2008
The "Real" US Economy / Economics / Corporate Earnings
By: Paul_J_Nolte
Everything was looking good until Friday. Instead of bringing good things to light, they turned out the lights on the nascent market rally and put everyone back on their heels. The GE report came after the government reported the trade deficit worsened the day before – without much fanfare. However, in our view the worsening trade deficit takes out one of the few remaining legs supporting the large multi-national companies, specifically that while domestic sales are down, the foreign sales should carry the day.Read full article... Read full article...
Tuesday, April 15, 2008
Two Important Lessons from GE's Earnings Drop / Companies / Corporate Earnings
By: Money_and_Markets
Tony Sagami writes: In 1896, General Electric was one of the original 12 companies listed on the newly-formed Dow Jones Industrial Average. After 112 years, GE is the only original company remaining in the Dow.
So when one of America's most respected — and largest — companies announced that their quarterly profits fell well short of expectations ... and warned that the rest of 2008 wasn't looking so hot ... I perked up.
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Monday, April 14, 2008
Weak Earnings from GE Spark Economic Concerns / Companies / Corporate Earnings
By: Jennifer_Yousfi
General Electric Co. ( GE ) shocked the market when it announced a 6% drop in net income for the first quarter of 2007.
Continuing earnings per share for the quarter were down 8% to 44 cents per share, missing the mean of analyst expectations at 51 cents per share. Continuing earnings were down 12% from the same period a year prior to $4.4 billion.
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Tuesday, February 19, 2008
Three Strategies to Protect Your Investment Portfolio From Falling Corporate Profits / Portfolio / Corporate Earnings
By: Money_and_Markets
Tony Sagami writes: If 2008 has been tough on your portfolio, there is no shortage of blame to go around: $90 oil, the subprime mortgage crisis, the collapsing dollar, and falling real estate prices.
But in my opinion, the underlying cause of U.S. stock market woes is much simpler: Rapidly disappearing corporate profits.
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Monday, December 03, 2007
Essential Service Companies to Weather Economic Downturn / Companies / Corporate Earnings
By: Roger_Conrad
Aren't you glad you own essential service stocks? Despite one of the most volatile, fear-driven markets in memory, shares of top-quality power, gas, water and communications companies are decidedly holding their own. In fact, even as the big cap averages have slid in recent weeks, the utility averages are again near all-time highs. Essential service companies' advantage is simply that what they provide is critical to a functioning America. Anxiety-ridden consumers will cut back on gift-giving, postpone the purchase of an appliance or car or cancel a vacation. But they'll still pay their power, water and heating bills, and just try to take away their cell phones and laptops!
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Sunday, November 11, 2007
Commodity And Vital Resource Producer Stocks are a Good Way to Protect Against Subprime Credit Crunch / Companies / Corporate Earnings
By: Roger_Conrad
Earnings season is winding down. As always, not every company made its numbers. In fact, even in the essential service end of the market, there were some bad misses.
The news on SPRINT NEXTEL CORP, for example, continues to get worse and worse. Not only did the third quarter numbers show dramatic customer losses to AT&T and VERIZON COMMUNICATIONS, but the company has now abandoned its venture with CLEARWIRE CORP that was supposed to revive its floundering WiMax development efforts. That throws the future of the projected $5 billion investment in doubt. In response, the shares have tumbled again.
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Saturday, November 03, 2007
Corporate Earnings Focus on the Real Numbers / Companies / Corporate Earnings
By: Roger_Conrad
Does it really matter whether or not a company makes Wall Street estimates? What about employment or GDP growth numbers coming in above or below consensus? Is there a magic number for crude oil inventories that will trigger a higher or lower price? At no time in the markets are numbers more widely watched than earnings season. First come the pre-announcements and handicapping, as analysts put every company with a half-decent following under the microscope.
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Monday, October 29, 2007
The Economy and The Worker Value-added Fallacy / Economics / Corporate Earnings
By: Gerard_Jackson
Now that the Labor Party has the sniff of victory in its lungs, some of its most ‘brilliant economic thinkers' are already dreaming up schemes that will impose heavy costs on the Australian economy. One of these dirigiste schemes is based on the value-added fallacy. There are two assumptions behind their thinking: One is the belief that the state (politicians and union hacks) can impose high-value-added structures on the economy that will provide a buffer against commodity-driven booms. This policy will lead — so they think — to more value-added export-orientated production. The second assumption is the unfounded belief that value added always equals high-tech.Read full article... Read full article...
Tuesday, October 02, 2007
Using The Emissions Cost Curve To Identify Investment Opportunities / Companies / Corporate Earnings
By: Hans_Wagner
Investors who beat the market look for opportunities in places before others arrive on the scene A recent edition of The McKinsey Quarterly discussed “A Cost Curve for greenhouse Gas Reduction” The McKinsey Quarterly September 27, 2007 . The study presents their analysis of the costs to abate greenhouse gases, especially CO 2 . Their goal is to provide a framework for policy makers and business people as they debate future regulation. Read full article... Read full article...
Saturday, August 04, 2007
Surviving Financial Contagent by Focusing on Company Results / Companies / Corporate Earnings
By: Roger_Conrad
The subprime mortgage/high-yield meltdown continues to dominate the markets and financial media. There's a good reason for that: The world's financial markets are intimately connected in myriad ways, and none of us has a firm grip on all of them.
With luck, this situation won't develop into a full-scale financial meltdown along the lines of 1998. The economy, for example, is clearly healthy despite some weak spots, as this week's employment figures and the recent gross domestic product (GDP) growth and low inflation indicate. But until we see clear signs that it's winding down—and not spreading to other higher risk areas—investors are going to keep reacting, and strongly, to the various straws in the wind that appear.
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Sunday, July 29, 2007
Vodafone Quarter 1 Results Show Company is Reducing Loss of Contract Customers / Companies / Corporate Earnings
By: Submissions
Commenting on Vodafone's Q1 results*, Rob Barnes, head of mobiles at moneysupermarket.com, said: “Vodafone's Q1 results for 2007 show that so far this year the group has achieved a number of its objectives. In particular they have focused heavily on international and emerging markets.
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Saturday, July 28, 2007
Stock Market Investments - Hanging In There / Companies / Corporate Earnings
By: Roger_Conrad
I'm a glass-half-full guy. I always look for the bright side. And when things look their blackest, my every instinct is to buy, buy, buy.
I've also been in the investment business long enough to know that things don't always work out. Many times, where's there's smoke, there's a raging blaze that will scorch anyone who gets too close.
Businesses as cash-rich as investing do attract criminals. And you can't always trust the numbers.
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Thursday, June 28, 2007
Apple's IPhone, An Investors Dilemma / Companies / Corporate Earnings
By: Hans_Wagner
Apple has helped investors beat the market this year. The company's iPhone is one of the biggest events of the year for many investors and those interested in the potential of a “game changing” device. Any investor who bought Apple's stock in that recent past has enjoyed a very nice appreciation, partly due to the anticipation that has built up around the iPhone. The question for investors is do I hold on my Apple stock, or do I sell it before the iPhone is released for sale 6pm local time on June 29, 2007. Let's see if we can help put some perspective on this issue.
Saturday, May 19, 2007
Derivatives Disaster: Deriving The Truth / Companies / Corporate Earnings
By: Rob_Kirby
In an article I penned two weeks ago, I discussed the misfortunes of the Bank of Montreal [BMO] and their costly foray into Natural Gas derivatives trading. In that piece I wrote what are now some rather prophetic words in my assessment of BMO and their 450 million “charge” against 2 nd quarter earnings, when I opined;
Read full article... Read full article...“This means that the BMO's ‘long natural gas position' was almost certainly a MUCH BIGGER LOSS – at one point in time – than they are admitting to us now.
BMO's year end is Oct. 31. I'm left wondering why they did not report a bigger loss last quarter.”
Wednesday, April 25, 2007
Stock Markets - Sell in May and Go Away? / Stock-Markets / Corporate Earnings
By: Hans_Wagner
Investors who want to beat the market need to be aware of the key trends that will impact their portfolios. To some this year looks like a classic sell in May and go away. The theory is that the market goes into hibernation for up to six months from May to November, and during the other six months it gets back into gear and makes its move up. Part of this idea comes from the larger traders taking time off for their summer vacations.
I am not so sure we will see this happen this year, as I expect many traders and investors will be looking to react quickly to any further signs of market weaknesses. I also believe we are likely to see much more volatility in the months ahead, which should present some good buying opportunities for some quicker trades.
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Tuesday, April 17, 2007
Nolte Stock Market Notes - Emulating Janus look towards Earnings / Stock-Markets / Corporate Earnings
By: Paul_J_Nolte
Like the Roman god, Janus, the markets are looking both forwards and backwards – hence the reluctance to put on a big show and rally strongly to new highs. Also, a reason for the swoon mid-week as the Fed indicated that they remain concerned about inflation and that rates may still be increased in the future. Many would believe that inflation figures are backward looking and that the Fed should be more concerned with housing and the issues surrounding the sub-prime loan market (a forward looking item), the reported inflation figures from the producers indicated that inflation remains relatively tame. Spurred by a good start to the earnings season, stocks generally rose as investors hoped companies have talked down their earnings to such a low level that even a snake could hurdle “expectations”.Read full article... Read full article...
Friday, April 06, 2007
US Economic Growth and Corporate Earnings Growth Expectations / Companies / Corporate Earnings
By: Hans_Wagner
Investors who wish to beat the market should have a good understanding of the market's earnings expectations. The U.S. economy is slowing and the market has lower earnings expectations for 2007. This will limit the expectations for potential growth in the stock market as investors take a more cautious near-term view. However, global growth in the emerging and BRIC countries should help global companies grow their earnings helping to offset the impact of lower earnings in the U.S.
Many of the large U.S. based companies derive more than 50% of their revenues and earnings from outside the U.S. This could set the stage for a change in the current bull market trend. Joe Ellis has written an excellent book on how to predict macro moves in the market called Ahead of the Curve: A Commonsense Guide to Forecasting Business and Market Cycles 
.
Tuesday, February 27, 2007
What the PE Ratio can tell us about the Future Stock Market Direction / InvestorEducation / Corporate Earnings
By: Hans_Wagner
S&P 500 earnings are on track for a 20% gain compared to last years 3 rd quarter. Next quarter earnings should rise about 11%, marking the fifteenth straight quarter of a double-digit gain. Along with the excellent earnings performance we have experienced dramatic strength in the major averages as well. The DJIA is at all time highs and the S&P 500 is above 5 year highs.
The outlook for continued good performance in both earnings and the indices remains strong. Given this positive outlook, I thought it might be appropriate to see if stock valuations are getting ahead of themselves by looking at current and past PE ratios.
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