Earnings are coming in, and higher costs are weighing on profit margins

  • 📰 CNBC
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

Early earnings returns from the first quarter are in, and there is a clear warning: higher wage costs, higher raw material costs, and higher transport costs are weighing on earnings.

div > div.group > p:first-child"> There's good and bad news as we enter the heart of earnings season.

The bad news: there's a very large discrepancy between earnings and revenues, and that is likely a sign that cost pressures are starting to show up in the system. Indeed, in a recent survey of 23 companies that have reported first quarter earnings, FactSet noted that a high percentage cited some form of higher costs:Listen in on the conference calls or read the earnings reports of the companies that have reported so far, and you can see plenty of references to the impact of higher costs on the bottom line.

Costco March 7:"[W]e're still facing the headwinds from the U.S. wage increases to our hourly employees that went into effect last June 11, 2018."

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

This statement makes no sense. Earnings ae coming in much better but revenues are missing big time which is also a disconnect with GDP numbers

Rushed home to watch market close, saw this CNBC Tweet & thought “What genius at CNBC thought the article below was relevant to your target audience?” Don’t expect a reply JoeSquawk or jimiuorio but for God’s sakes, wake somebody up over there 👇🏻👇🏻

You mean that there aren’t enough costs to squeeze out given the lack of growth to continue earnings momentum..

Sooooooooo inflation?

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Netflix looks like Amazon in its early years ahead of its earnings, market watcher saysNetflix is set to report earnings after the bell Tuesday. BK Asset Management's Boris Schlossberg says investors only care about one thing and it has him seeing flashbacks of Amazon's early years. TradingNation Purr muh bulls hit TradingNation Continued increases in monthly subscriptions by Netflix will create an opening for a new comer or established media company to introduce $6.99 HD subscription model. Folks are already choosing Prime over Netflix as discretionary $ for household media consumption tops off at $79
Source: CNBC - 🏆 12. / 72 Read more »