The quarterly reporting season of 4Q22 is about to begin, being a factor that could influence the mood of the markets in the concise term. In this sense, analysts estimate that the S&P 500 companies would have experienced a 4.1% year-on-year contraction in their profits. If this figure is confirmed, it will mark the first […]
Within fundamental analysis, there are two key factors that influence the yield of a share: the earnings generated by the company and how investors value those earnings. In this context, one way to determine the value of a share is through a financial ratio known as the Price/Earnings multiple (P/E ratio). In this tutorial, we […]
Following up on the agreement reached between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling, here is an update with the relevant points: Over the weekend an agreement on the “Fiscal Responsibility Act”, which suspends the debt limit until next January 1st, 2025, was announced. The main source of budget savings […]
April 04, 2023
The corporate reporting season is about to begin. In this context, the consensus considers that the companies of the S&P 500 would have recorded a contraction of 5% per year in their profits in 1Q23 (excluding the energy sector, the contraction of profit would be 6.6% YoY). This would represent the most significant drop in reported earnings since 2Q20 and would mark the second straight quarter that earnings have contracted.
Only 4 sectors of the 11 that compose the index showed a positive performance. In this sense, the consumer discretionary sector registered the highest growth rate in the quarter (+36.4% annual) due to the strong performance of the sub-industries of retail, hotels, resorts, and cruise lines. Next, the industrial, energy, and financial sectors show increases of +17.9% per year, +13.7% per year, and +5.2% per year, respectively. On the other hand, the materials sector would have registered the weakest performance, with a 33.5% annual drop in profits, given the weakness of activities related to basic chemicals and copper mining.
About sales, the consensus expects growth of 1.6% per year (the lowest value since 3Q20) for the companies in the index. The financial sector experienced the highest growth rate in the quarter (+9.1% annually) due to the positive performance of consumer finance, financial services, and banking activities. Once again, the materials sector appears to be the weakest, with a drop in sales of 8.3% annually.
JP Morgan will give the starting signal on April 14, along with the reports of other central US banks, so that the market will be attentive to their respective announcements amid recent events related to the banking system.
January 10, 2023
The quarterly reporting season of 4Q22 is about to begin, being a factor that could influence the mood of the markets in the concise term. In this sense, analysts estimate that the S&P 500 companies would have experienced a 4.1% year-on-year contraction in their profits. If this figure is confirmed, it will mark the first […]
June 06, 2023
Within fundamental analysis, there are two key factors that influence the yield of a share: the earnings generated by the company and how investors value those earnings. In this context, one way to determine the value of a share is through a financial ratio known as the Price/Earnings multiple (P/E ratio). In this tutorial, we […]
May 30, 2023
Following up on the agreement reached between President Joe Biden and House Speaker Kevin McCarthy on the debt ceiling, here is an update with the relevant points: Over the weekend an agreement on the “Fiscal Responsibility Act”, which suspends the debt limit until next January 1st, 2025, was announced. The main source of budget savings […]
