Earnings Season Is Starting. What to Expect.

Companies are in a position to report higher earnings than expected for the third quarter. That doesn’t mean their stocks are going to soar.

That won’t help third quarter earnings-per-share results, which are expected to drop about 0.3%. Profits are growing slower than revenues because margins are narrowing as the cost of labor rises faster than sales. The few earnings reports that have trickled in so far have been better than expected. Eighteen out of 21 companies have beaten EPS estimates, according to Wells Fargo.

That is expensive, given the fact that bond yields have gained this year, making fixed income more attractive. Earnings would have to beat expectations by a particularly wide margin to move stock prices substantially higher.

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.

These stocks are looking mighty cheap going into earnings seasonAs the next earnings cycle approaches, here are some cheap stocks liked by analysts.
Source: CNBC - 🏆 12. / 72 Read more »

4 Stocks Set to Comfortably Beat Analyst Expectations This Earnings SeasonStocks Analysis by Investing.com (Ismael De La Cruz) covering: MetLife Inc, American International Group Inc, Assurant Inc, DaVita HealthCare Partners Inc. Read Investing.com (Ismael De La Cruz)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

What the Street expects this earnings season — and the headwinds we're monitoringThe third-quarter earnings season unofficially kicks off this Friday.
Source: CNBC - 🏆 12. / 72 Read more »