🦉 How to Read an Earnings Report | Step by Step Guide with Tips
Earnings reports are trickling out from some of the biggest public companies, and investors remain uncertain about the current environment. Economic expansion is slowing and sentiment is muted, but good earnings data could boost stocks into the next leg of the bull market. Are you up to speed on how to read earnings reports? If not, this article will provide the knowledge to decipher earnings data and separate actionable info from corporate fluff, making you a more confident investor. Why do public companies release earnings reports? For starters, it's the law - the Securities and Exchange Commission (SEC) requires public companies to make regular financial reports to shareholders. Additionally, earnings releases are like report cards for public companies. .
Equity markets were flat to up on Wednesday as traders tried to gauge the future of interest rates. The S&P 500 and NASDAQ closed near break-even for the day, while the blue-chip Dow Jones Industrial Average led with a gain near 0.5%. This is the longest winning streak for the blue-chip index, putting it at a one-month high with sights on retesting the all-time high. The risk for traders now is that next week's economic data and retail sector earnings will sap sentiment and cap gains in equities.
Among the hurdles for the market is guidance. The earnings season is better than expected on average, but guidance from key companies has been light and points to a weaker 2nd half than previously forecast. In this scenario, the S&P 500 is heading toward a hard ceiling that may coincide with the next FOMC meeting. The market continues to predict an interest rate cut for this year but may be overly optimistic. The FOMC has normalized rates; we have to live with them until the next economic catastrophe.
Earnings reports are trickling out from some of the biggest public companies, and investors remain uncertain about the current environment. Economic expansion is slowing and sentiment is muted, but good earnings data could boost stocks into the next leg of the bull market. Are you up to speed on how to read earnings reports? If not, this article will provide the knowledge to decipher earnings data and separate actionable info from corporate fluff, making you a more confident investor. Why do public companies release earnings reports? For starters, it's the law - the Securities and Exchange Commission (SEC) requires public companies to make regular financial reports to shareholders. Additionally, earnings releases are like report cards for public companies.
Congress and the Biden administration are considering what, if anything, should be done to tighten restrictions on donor-advised funds, an increasingly popular way for donors to set aside money to spend on charitable causes
The latest ISM manufacturing PMI index suggests that the turning point for the automotive stock sector is imminent. According to the report, a member of the primary metals industry was quoted as saying that "automotive builds continue at averages but not near maximum outputs." This could translate to there being a long runway for the industry to catch up. This sector is home to large household names like CarMax Inc. (NYSE: KMX) and Ford Motor (NYSE: F). However, playing the value chain is often a better way to express a view for an industry, which is why original equipment manufacturers (OEMs) and other parts makers could be a more attractive growth strategy. To ride this wave, investors could consider companies like Visteon Co.
FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors. The exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them.The filing said that after paying claims in full, the plan provides for supplemental interest payments to creditors, to the extent that funds still remain. The interest rate for most creditors is 9%.That may be a diminished consolation for investors who were trading cryptocurrency on the exchange when it collapsed.
Shares of Micron Technology (NASDAQ: MU), a leading provider of storage-focused microchip products worldwide, are having a year to remember. MU has surged over 40% year-to-date, significantly outperforming the overall market and its semiconductor sector, up 27% during the same period. Notably, Micron Technology possesses an increasingly bullish sentiment. The stock is one of the most followed names and a favorite amongst analysts, earning it a spot on the top-rated list and most upgraded stocks list. After posting an impressive earnings beat in March, the stock has spent several months consolidating above rising key moving averages, forming a bullish consolidation.
Anheuser-Busch InBev reported higher-than-expected revenue in the first quarter despite lower sales in the U.S. and China.The world's largest brewer — whose brands include Budweiser, Stella Artois and Corona — said its revenue rose 2.6% to $14.5 billion. That beat Wall Street's forecast of $14.3 billion, according to analysts polled by FactSet.Volumes declined 0.6% for the quarter, the Leuven, Belgium-based company said. Beer volumes were down 1.3%, while volumes of non-beer products – including Cutwater and Nutrl spirits – rose 3.5%.The company continued to struggle in the U.S., where revenue fell by 9% for the January-March period.
Shares of AbbVie (NYSE: ABBV) fell hard in the wake of its Q1 earnings report, but the dip is over. The market response to slowing Humira sales is overshadowed by strength in the non-Humira portfolio, resilient business, and a solid pipeline. Analysts trimmed their targets following the release, but that statement has a caveat. The two analysts' revisions tracked by Marketbeat include lowered price targets, but they are still at the high end of the expected range and project upside for investors. The consensus estimate forecasts a slim 6% increase for the stock, but the high-end adds ...
European Union nations have reached a tentative breakthrough deal to provide Ukraine with billions in additional funds for arms and ammunitions coming from the profits raised from frozen Russian central bank assets held in the bloc
The Night Owl is an evening newsletter published by The Early Bird and powered by MarketBeat. The Night Owl covers top stories on the stock market and outlook on interesting stocks. If you give a hoot about the market, read your copy every Tuesday, Thursday, and Sunday evening.
MarketBeat Media, LLC 345 N Reid Place, Suite 620, Sioux Falls, SD 57103. contact@marketbeat.com
No comments:
Post a Comment