Homepage / Investment / In this earnings season, a volatile stew of expectations
Menyelami Dunia Slot Thailand: Keseruan dan Peluang Kemenangan Besar Menyelami Dunia Slot Thailand: Pengalaman Bermain yang Tak Terlupakan Best Gay Hookup Websites | FreeHookupsSites The Ultimate Guide to Psychic Analysis Enjoy exciting and safe online dating experiences Relax Your Mind: the way to get the Inside Voices through your Head Find love regarding most readily useful mature dating site usa The Power of Clairvoyant Analyses Uncover the Advantages of Playing at Masalbet Casino Virtual Casino Fairgo Review Wireclub: Program For Internet Dating | Assessment 2023 Discover the many benefits of dating a korean girl and luxuriate in enduring love How discover a couple for woman that fits your needs SpinBetter Freispiele⁚ Ein detaillierter Überblick (Stand⁚ 26.01.2025) Стиль и Защита: Чехлы на Телефон и Планшет от Womux com NikaDate.com 2025: Trick Insights Before You Sign up with Elderly Sizzle: Come Across Great Hookups Over 40? | 1win APP: Descargar, Juegos, Casino, APK Chile cl 1win Punjab FC create history with historic 2-1 win against Everton FC SofiaDate Evaluation 2025: Is This Website Worth The Buzz And Cash? bets10’in Kazançlý Slot Oyunlarý Nv Casino: Przewodnik po Świecie Gier Hazardowych Casino Wazamba Online Summary Discover the best local hookup internet sites for meeting wives Leading Gay Dating Apps: My Personal Collection test Télécharger 1win Sénégal apk 1win Sénégal inscription popochka Hesap Açma Promosyonu Veren Siteler Xslot Kumar ve Güven Merkezi Get the absolute most out of your ebony bbw site source Leading Online Casino Rocketplay Evaluation Find the right partner on nymphomaniac dating website what exactly are local sex websites and exactly how can they assist you to? casino 643 Online Casino 7slots Grandpashabet 2217 Güncel Giriş Adresi Grandpashabet2217 com 5804 grandpashabet güncel Trezor Suite Official Desktop && Web Crypto Ledger Live App: Buy, Sell, Stake and Swap Crypto Hardware Wallet & Crypto Wallet Security for Crypto Shared: The 7 Things Men Want from Females What is Ledger Recover? New Feature Review 2024 What is Ledger Recover? New Feature Review 2024 Enjoy the thrill of meeting new individuals in web adult chat rooms sex 1Win Burkina Faso Parie en ligne chez le bookmaker en Afrique Grandpashabet Bahis Sitesi Güvenilirlik ve Eğlencenin Buluştuğu Adres 0053 Southern African Men – Meeting, Dating, and More (plenty of Pics) Silvana lee adult Grandpashabet Grandpashabet Resmi Güncel Giriş 7719 Enjoy a fun, protected, and unique dating experience Nuevos casinos en Argentina: expansión y regulación conforme al juego responsable Philadelphia Gay Dating: Get The Best Partners Lucky Jet официальный сайт игры от 1win games Join our community of bisexual women and discover your perfect match today Merdeka777: Daftar Situs Judi Slot Online Terpercaya Make buddies and discover love with local fetish chatroom Лучшие Онлайн Казино С Высокими Выплатами На Рулетке 2025 SecretBenefits Assessment: Prices, Characteristics and Buyer Critiques Website Resmi UIN SMH Banten Abebet Slot Sitelerinde Hoþgeldin Bonusunun Avantajlarý Maltcasino: Yeni Üyeler Ýçin Hoþgeldin Bonuslarý Opiniones sobre 1xSlots Lee las opiniones sobre el servicio de 1xslot com What you’ll want to know Take step one towards love and pleasure today Making Uses Of Prednisone Tablets Take control of your love life in order to find bbw mature lesbians today Bahis Sitelerinde Ücretsiz Deneme Bonusları Nasıl Kullanılır? Rulet Masalarında Bonuslarla Daha Fazla Kazanın Player women online dating| discover single video games women at Masalbet: En Çok Kazandýran Casino Sitesi Gambling in Australia and Modern Settlement Methods: The Rise of PayID TUAN88 Situs Main Game Online dengan Aman dan Nyaman Brit Cam Place — Singles From British Look For Pleasant Companions And Dating 1xbet Registration ᐉ 1xbet Sign Up برنامج المراهنات الرياضية تحميل التطبيق العميل Eg 1xbet Com Cassino Kto Jogos Para Cassino Online No Brasil” 1xbet Apk 1xbet للموبايل حمل تطبيق 1xbet لأنظمة أيفون و أندرويد 1xbet مصر Eg 1xbet Com Melhores Casas Sobre Apostas No País Brasileiro 2024 Casa-apostas Apresentando” قم بتنزيل 1xbet على جهاز الكمبيوتر ، وكيفية تنزيل تطبيق سطح المكتب على جهاز الكمبيوتر برنامج المراهنات الرياضية تحميل التطبيق العميل 1xbet Com How To Try Out Roulette Rules & Guide How To Win From Slots: Top Ideas To Boost Your Own Chances How To Win The Car In Gta 5 Casino Win The Particular Gta Online Scène Vehicle How To Win The Car In Gta 5 Casino Win The Particular Gta Online Scène Vehicle How To Perform Slot Machines Najlepsze kasyna bez depozytu 2025 The Best Different Roulette Games Strategy Tips In Order To Win At Roulette Promozioni effettive di 22Bet in Italia Отзывы о казино Stake от реальных игроков 2025 о выплатах и игре The Best Different Roulette Games Strategy Tips To Win At Roulette Cassinos legais no Brasil: novas regras e melhores sites Top 10 Biggest Casinos In The Usa 1xbet 보너스 받는법 및 출금 롤링조건 등 사용법 총정리 온라인카지노 Kr Your Current Reliable Partner Regarding Tent Manufacturing Online Kaszinó Játékok És Élő Kaszinó Játékok History Of Las Vegas Casinos Who Else Built It & How Sin City Emerged To Be En Güvenilir Canlı Bahis Empieza Casino Sitesi Игровые Автоматы На мнимые Деньги Играть Онлайн В Лучшие Слоты How To Available A Casino: A Detailed Six-steps Guide Gaming Paradise Is Just Around The Corner: Top Ten Casinos Throughout Las Vegas Find the right person: tips for effective singles dating over 60 10 Regarding The World’s Largest Casinos: The Greatest Casinos Ever! Gamification : la limite entre jeu vidéo et casino en ligne se brouille

Investment

In this earnings season, a volatile stew of expectations

This is a somewhat unusual earnings season with a lot of moving parts. Expect to hear about tax cuts, buybacks, big revenue gains, trade wars and very high future earnings expectations. It’s all a rather volatile stew, and the stock market is clearly expecting a positive outcome.

The stakes are high, with 20 percent profit growth expected in the second quarter and similar numbers expected for the rest of the year.

Here’s what it will be about:

1. The emphasis will be on fundamentals and on the expanding economy, and less on the tax cuts. Despite what people think, the 20 percent gain in earnings is not just because of the tax cuts. Here’s how that 20 percent profit growth breaks down, according to Goldman Sachs: 7 percentage points come from tax cuts and 13 percentage points come from pretax gains. So 35 percent of the gains are from tax cuts, and 65 percent from pretax gains.

2. The quarter’s theme will be about revenue growth, not about cost cutting. Here’s another old chestnut I keep hearing: “All the profits are coming because companies are cutting costs, they’re not growing top line.” That story is so 2016.

Revenue — top-line growth — has dramatically improved in 2018.

Q1: up 8.4 percent

Q2 (est.): up 8.1 percent

Q3 (est.): up 7.9 percent

Q4 (est.): up 6.0 percent

Source: FactSet

That 8.1 percent estimated increase in second quarter revenue means that the majority of the pretax profit is coming from revenue growth, not cost cutting or productivity gains.

3. You will hear more about investment spending, including buybacks, dividends and (from a small group of companies, mainly Apple) repatriation of profits. Announced buybacks are already close to $600 billion this year and many are estimating it will surpass $800 billion this year, a record. (There were a little more than $500 billion in announced buybacks in 2017).

Unlike many prior years, buybacks are reducing overall share counts this year. Dividend growth has been more modest, but has been increasing as well.

4. The trade war commentary will be mixed. Pay close attention to comments from auto manufacturers and retailers, all of whom will likely have trouble passing on tariff cost increases and will be the first to warn investors.

Elsewhere, the Federal Reserve has already signaled that trade war concerns may eat into what otherwise looks like a strong increase in capital spending. Listen carefully. My bet is we will hear a lot about “concerns” but not a lot of concrete commentary like, “We are cutting cap ex spending 10% over trade concerns.” Not yet.

5. The key to market momentum is to maintain guidance given earlier in the year. I call it “The 20 percent club.” It is a rare year when the S&P 500 will see earnings growth of 20 percent or more for each quarter, but that is exactly what is happening:

Q1: up 26.6 percent

Q2 (est.) : up 20.8 percent

Q3 (est.) : up 23.2 percent

Q4 (est.) : up 20.2 percent

Source: Thomson Reuters

The secret to keeping the market up this year is to keep the guidance up. “If we see earnings estimates for the third and fourth quarter drop below 20 percent growth, that would be bearish in my mind,” Nick Raich from Earnings Scout told CNBC.

The early signs are good. Some 23 companies have reported earnings so far, and they are seeing earnings gains of 24 percent and revenue gains of 12 percent, well above expectations.

Source: Investment Cnbc
In this earnings season, a volatile stew of expectations

Comments are closed.