18 Jul 2013
Flash: US earnings rundown – Deutsche Bank
FXstreet.com (New York) - Whilst BofA extended the recent trend of solid US bank results, we are starting to witness some general softness in top-line numbers – not the first time this has happened in recent quarters, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Mixed bag of earnings
Indeed BofA aside, “Yesterday’s earnings reports were a bit of a mixed bag overall. Of the twenty S&P500 companies that reported, 65% of those beat EPS estimates but just half of those exceeded revenue consensus. Industrial bell-wether Intel was one of those that missed top line estimates as revenue fell for the fourth consecutive quarter as the switch away from PC to Mobile/tablets continue to weight.”
Moreover, “In past reporting seasons we’ve noted how periods of USD strength have had a negative impact on top line performance for companies with global operations so this will be interesting to watch out for this reporting season. One of the first signs of this came from eBay's commentary yesterday after the company said that the projected weakness in offshore currencies such as Euro and Won against the Dollar have the potential to weigh on earnings in the second half of the year.”
Mixed bag of earnings
Indeed BofA aside, “Yesterday’s earnings reports were a bit of a mixed bag overall. Of the twenty S&P500 companies that reported, 65% of those beat EPS estimates but just half of those exceeded revenue consensus. Industrial bell-wether Intel was one of those that missed top line estimates as revenue fell for the fourth consecutive quarter as the switch away from PC to Mobile/tablets continue to weight.”
Moreover, “In past reporting seasons we’ve noted how periods of USD strength have had a negative impact on top line performance for companies with global operations so this will be interesting to watch out for this reporting season. One of the first signs of this came from eBay's commentary yesterday after the company said that the projected weakness in offshore currencies such as Euro and Won against the Dollar have the potential to weigh on earnings in the second half of the year.”