Global Earnings Tumble as Companies Dig Deeper for Savings
- Energy producers help drag down quarterly profits in S&P 500
- Finding more ‘hidden rabbits’ may be become more difficult
Time to Take Advantage of Rich U.S. Stock Valuations?
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Corporate earnings are heading for a fifth straight quarter of declines, dragged down mostly by energy companies’ struggles with low oil prices and a tepid global economy that threatens to throttle sales growth in many industries.
U.S. companies as varied as hamburger chain McDonald’s Corp. and Honeywell International Inc., a maker of gas-processing equipment and cockpit controls, have slashed costs and bought back shares to help earnings. Amid a worldwide sales slog, European pay-TV operator Sky Plc and South Korea’s Hyundai Heavy Industries Co. are crimping expenses to boost profit.