As the geopolitical backdrop is littered with risks and tensions, investors are awaiting earnings season as a welcomed distraction.
Earnings are expected to climb a total of 10.4% from this time last year. The rally that overtook equity markets in the first half of 2017 will be reflected in the earning results which will be released over the next few weeks.
After the muddled debate on US healthcare and the weighing pressures of US-Russia relationship, equities have been sliding. The positive earnings results may help push stocks higher, stabilising prices.
The growing technology and financial sectors as well as the rising price of oil have helped to support earning reports this quarter.
How earning reports could affect your portfolio?
Public companies release quarterly reports on their performance. Earnings reports include net income, earnings per share as well as net sales and operations reports. Investors use these reports to analyse the viability of the company as an investment.
Dissecting earning reports are at the heart of fundamental analysis, one of the key tools investors use to evaluate stocks. The paramount number that every investor scrambles to find is the earnings per share, as it compares the ratio of the company’s earnings to its outstanding shares.
Generally, each earning season begins one or two weeks after each quarter ends. The date companies release earning depends on when the company’s quarter ends, therefore certain companies report earnings outside of the general timeframe.
Analysts sift through these reports to make buy and sell recommendations. Earnings season is a very volatile time in the market as individuals inspect earning releases. Markets with large market capitalisation can move then market with earning announcements. Fluctuating in accordance with earnings, stocks will likely move as a result of beating analyst’s expectations rather than building on the last quarters profits.
This week, we have the following earnings:
