Companies Set to Chronicle Troughs of the Pandemic as They Report Earnings

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Businesses are beginning to give investors their first, full look at the impact the coronavirus pandemic had on their balance sheets

America’s 500 largest public companies are expected to report a 44% drop in earnings for the second quarter when widespread lockdown orders ended a decadelong economic boom, according to analysts polled by FactSet. That compares with a 14.9% decline in the first quarter. The 44% decline, if manifested, would reflect the S&P 500’s largest year-over-year drop in earnings since the fourth quarter of 2008.

Still, finance chiefs threw in the towel on their expectations amid uncertainty, with more than 40% of S&P 500 companies pulling at least part of their guidance. Among the sectors with the biggest declines in revenue in the first quarter were energy and bricks-and-mortar retail—with some high-profile bankruptcies—and supply-chain dependent industries such as automotive and industrial goods, according to a Dow Jones Newswires analysis. Airlines, hotels, restaurants and cruise lines also suffered.

A recent rebound in oil prices is helping some energy companies, while others, for example shale producers, continue to suffer because of high levels of debt. Companies have reported stronger sales of goods required for shelter-in-place, from Campbell Soup Co. to laptop maker HP Inc. But those purchases in some cases didn’t offset declines caused by lower activity outside the home. HP reported an 11% decline in sales for the quarter ended April 30, as it didn’t sell as many office printers.

 

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lemmee guess... pretty bad, huh? except for 'essential businesses' of course

Trump's response to, or rather his scoffing about the virus has made this situation has made it immeasurably worse. Why the TOTAL absence of reporting about Trump? Propaganda Much? FoxNews East.

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