What I’m Watching this Earnings Season

Outside of pure bottom line numbers, here are eight things I’m looking for this earnings season.

1. How much has the dollar hurt revenues? This was a big factor during Q2. It shouldn’t be as much for Q3, but let’s see the details.

2. Are companies raising dividends? This has been a big year for dividends. Goldman just raised its payout. Will this trend continue?

3. Where are the strong areas? So far, there were impressive beats from ConAgra and Lennar. Does this mean that housing is continuing to lift the consumer?

4. What kind of guidance are we seeing for Q4 and 2012? J&J just bumped up guidance after lowering it before.

5. What are expansion plans like? A few retailers recently announced quite large hiring plans over the holidays. Walmart’s stock is at an all-time high.

6. Do we have any clues what the holiday season will be like? We haven’t had a blow-out holiday season in a few years.

7. Margin pressure. We stretched profit margins about as far as they can go. What kind of pricing pressure do firms have, especially at the high end?

8. What’s the damage from Europe? This was another major theme during Q2. Do U.S.-based firms still have large exposure to the economic chaos there?

Posted by on October 16th, 2012 at 9:24 am


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