Quarterly results of the Earnings Season
We are entering a new Earnings Season, in which the publication of quarterly corporate earnings will be released. The markets expect a lot of good news from these publications, as always, even though there’s general consensus that the “economy is crashing”. We believe one can expect not only a rise in share prices but also some positive impact on jobs created.
Also, be wary of sudden market moves which are expected to occur in all Markets. This is, of course, due to the high amount of expectation that happen at these times. Consult the table below to see when each company’s report will go out and what is the expected gain per share for each of them.
How the Earnings Season is impacting companies
Alcoa, the US aluminum manufacturer, released its publications last week with better than expected results, causing a rise in the share price. It’s earnings per share amounted to 15 cents, while the consensus expected 9 cents.
The same goes for Citigroup and JP Morgan who both presented better than expected results for the second half. Citigroup showed an increase in earnings per share of 1.24 dollars, which is much higher than what was expected, US$ 1.10. As for JP Morgan, for whom we expected a decline of 8% of its results over one year, limited the fall to 1.43% with net banking income up 2.8%, totaling $ 25.2 billion.
Overall, the results of US companies are expected to plummet by 4.7% for the second half as estimated by Thomson Reuters, against 5% for the first quarter. However, given the optimism of the markets as to the recovery of the US economy, predictions are cloudy at best.
Here is a selection of the main publications that should move stock prices but also stock indices. Tradeo urges all traders not to miss out on the opportunities of the Earnings Season!