What to Look for in First-Quarter Earnings Reports

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April 7 (Bloomberg) -- Bloomberg's Alix Steel and Michael Regan preview first-quarter earnings in "On The Markets" on Bloomberg Television's "In The Loop."

Pretty much a flat quarter.

One percent earnings growth, obviously pretty weak.

They were looking at 6.6% -- wow, huge remission down.

The obvious commission will suspect is the weather.

This brought out a lot of estimates -- higher 10 year yields are creeping in the background.

What is interesting is that in earnings season everyone pays attention to the outlooks for future quarters.

This will be a bigger theme this year.

By the fourth quarter, looking for about 9.9% earnings growth.

People will be on the edge of their seats to see these forecasts -- if we were going to find growth in the first quarter, where would investors be looking right now?

The real standout is industrial companies -- manufacturers like ge, caterpillar, 3m, forecast wrote earnings by 13%. a fantastic growth for this quarter especially.

Obviously, people are expecting a big rebound in capital spending.

A lot of investors and company executives did not take the economic rebound seriously over the last few years and were very cautious with their cash.

Now that you look forward, estimates of about 2.7% gdp growth, three percent next year.

The speculation and expectations are that companies will start taking this account -- start taking this economy seriously and make the investments they need to.

I'm looking at caterpillar here.

1200 billion dollars of revenue from asia last year and that is where emerging markets are getting hammered.

We also have industrial metals have really been laggard as well.

Curious as to why now these industrial stocks would be a good bet.

Asia is always a question mark for these companies.

Europe was in a recession for 2 years.

We are looking at this year for europe to break out.

China is always a multiple celebrities and sort of arrest any downtrend.

Do we think this is a longer-term fundamentals for just a quick fix pent-up demand?

They expect it to be a gradual recovery in capital spending.

Are we seeing any money rotate out of a certain sector?

It seems we are not seeing the same thing with high data trade.

Obviously, like you mentioned him high data, biotech, those steps are almost in a freak -- those socks are almost in a freefall right now.

That is the story with industrials, too.

About $600 million last year, the spider etf.

That is the most it has ever attracted since it was created in the 1990's. fascinating could appreciate you shining a light on earnings season.

"market makers" is up next.

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This text has been automatically generated. It may not be 100% accurate.


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