Coronavirus impact hits earnings — what Cramer and others are watching

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Coronavirus impact hits earnings — what Cramer and others are watching (via TradingNation)

are going to be providing that liquidity, that credit, the ability for companies to survive over the next couple quarters.

Aperture Investors Chairman and CEO Peter Kraus said it would be harder to gauge the outbreak's impact than some might think: "It portrays the difficulty that financial institutions are going to have in trying to estimate what the credit impact is on their books, both commercial impact, meaning for commercial lending, as well as residential lending through this recession. And I don't think we really have enough information right now. You know, you're a month-plus into this shutdown. We've seen delays in interest payments for a month. We really haven't seen more than that.

Marty Mosby, director of bank and equity strategies at Vining Sparks, forecast stability for stocks like JPMorgan's going forward: "We have to change our perspectives. It used to be returns and revenue growth. All that's basically where it was when we left it off. We now are focused completely on credit and how much capital do we have to be able to pay for the credit costs? If you look at the earnings that JPMorgan just released at 78 cents, that compares what they're paying in dividends of 90 cents, so, they basically earned their dividend, which is the first threshold.

 

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