Displaying items by tag: profits

(New York)

Second quarter earnings season is about to begin, and nobody has much expectation for good news. Analysts across the board expect earnings to shrink, brining back the first profit recession since 2016. Materials, technology, and consumer discretionary are set to get hit the hardest, but the majority of sectors are likely to see losses. Analysts estimate the average earnings decline for the S&P 500 will be 2.8%.

FINSUM: It will be interesting to se if this has any effect on stocks. Given it is so telegraphed, we don’t think there will be a big impact unless the losses are much steeper than expected.

(San Francisco)

In an eye-opening piece of data, Apple is about to break its own record for profitability. The company is about to report fourth quarter earnings, the first quarter which will include the new iPhone X, and revenue growth is supposed to be in the double digits for the first time in years. Apple is supposed to have sold 81m iPhones, boosting revenue 11%.

FINSUM: So what we like about these forecasts is that (if they come true) they are a profitability record and not a valuation record. They will help reinforce the stock’s price.