http://www.businessw...16/b4030032.htm
U.S.: Earnings Season Is About To Get Chilly
A softer economy and sagging margins will sap profits this year
Corporate profits have been on a tear for more than three years. Defying expectations, earnings growth remained strong last year, completing a record 14 consecutive quarters of double-digit gains from the previous year. Get ready for a change. The profits slowdown already appears to have started, and margins are getting squeezed. For 2007, the combination of cooler demand and warmer labor costs will create a tough economic climate for earnings. Investors who don't adjust their expectations are bound to face some disappointments as the year progresses. ...
U.S.: Earnings Season Is About To Get Chilly
Started by
Russ
, Apr 10 2007 04:09 PM
3 replies to this topic
#1
Russ
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Posted 10 April 2007 - 04:09 PM
"Nulla tenaci invia est via" - Latin for "For the tenacious, no road is impossible".
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
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"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#2
fib_1618
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Posted 10 April 2007 - 04:17 PM
Well, the marketplace isn't seeing any change...better to follow its lead and let Business Week theorize why it was wrong (again) later on.Corporate profits have been on a tear for more than three years. Defying expectations, earnings growth remained strong last year, completing a record 14 consecutive quarters of double-digit gains from the previous year. Get ready for a change.
Fib
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#3
nimblebear
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Posted 10 April 2007 - 04:23 PM
Well, the marketplace isn't seeing any change...better to follow its lead and let Business Week theorize why it was wrong (again) later on.Corporate profits have been on a tear for more than three years. Defying expectations, earnings growth remained strong last year, completing a record 14 consecutive quarters of double-digit gains from the previous year. Get ready for a change.
Fib
Institutional buying seems strong the past few weeks. Unless something out of the blue changes that, its hard to see it going down. With that said though, tomorrow could be a good down day if the Fed says something stupid again, like Greenpants did before the 26th.
OTIS.
#4
Tor
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Posted 10 April 2007 - 05:05 PM
Well, the marketplace isn't seeing any change...better to follow its lead and let Business Week theorize why it was wrong (again) later on.Corporate profits have been on a tear for more than three years. Defying expectations, earnings growth remained strong last year, completing a record 14 consecutive quarters of double-digit gains from the previous year. Get ready for a change.
Fib
Lets see............sometimes they need to catch up to factor things in. I think that is what we shall see. You know earnings are slowing at an alarming rate. the SPX eps growth rate is moving from a staggering 16% rise in 2006 to a yoy anticipated decline of 4%. This is a big event.
I accept liquidity and M and A and buybacks will likely cushion the blow to the downside however this time round.
Please also bear in mind the core inflation guages will trend up short term. A window of stagflation........in market perception.
Interesting times!
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.
