Earnings season reality might be about to bite

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 90%

United States News News

United States United States Latest News,United States United States Headlines

Slowing economic growth has started bleeding into profit downgrades for 2024. Investors could be in for a volatile earnings season.

and announced it would slow production, cut management and manufacturing jobs, and try to become more efficient through better technology, upgrading software and IT.David Rowe

Macquarie expects 2023 financial-year earnings growth, which had been forecast to be as high as 15 per cent, is likely to come in at an anaemic 0.7 per cent. UBS strategist Richard Schellbach says there are four key questions that investors need to answer as attention turns to “a decelerating economy, a strained consumer, and the lagged effect from the Reserve Bank’s hiking cycle which began a year ago”.noted monetary policy is now “clearly restrictive”, but the lingering worries about rising rents, electricity prices and wages have most economists expecting at least one more rate rise in August.

He also argues the potential for higher-than-expected interest costs to surprise due to higher short-term rates is real. “And in an environment where revenue and margins remain on the back foot, the erosion this causes to bottom-line earnings becomes increasingly harder to hide, and will also be in focus.”

 

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

 /  🏆 2. in US

United States United States Latest News, United States United States Headlines

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

ASX to open lower; US earnings season looks solid, says BofAAustralian shares are set to open down but US shares are rallying as analysts predict a solid earnings season ahead and investors punt on a pause in Fed interest rates rises.
Source: FinancialReview - 🏆 2. / 90 Read more »

Ansell shares plummet on glove glut, earnings warningThe maker of safety equipment flagged job cuts and major IT spending.
Source: FinancialReview - 🏆 2. / 90 Read more »