Corporate Profits
The Q3 earnings season will shift into high gear this Friday as banks report their financial results for the quarter. Among the trends that we’ll be watching for is insight on the outlook for profit margins. As our US Investment strategists recently…
The unexpected increase in Chinese industrial profits in August sent a positive signal about the economy. Industrial profits posted its first year-over-year increase since the second half of last year, surging by 17.2% y/y following a 6.7% y/y contraction in…
According to BCA Research’s US Investment Strategy service, nonfinancial corporate businesses have been more insulated from rising interest rates than they typically are during major rate-hike campaigns, but the buffer is shrinking.. Households have been…
BCA Research’s US Bond Strategy service concludes that recent BEA data are understating corporate net interest expense by a significant amount. Given the recent climb in interest rates, it would be reasonable to expect that corporate interest expense would…
According to BCA Research’s European Investment Strategy service, the profit outlook for Eurozone earnings continues to deteriorate. The team’s earnings model for Eurozone equities continues to point to a deepening profit contraction in the order of 24%…
The ongoing profit contraction among Chinese industrial firms underscores that deflationary headwinds dominate the domestic economy. Although the annual pace of decline of industrial profits slowed from 8.3% y/y in June to 6.7% y/y in July (a 15.5% y/y drop…
The profit outlook for the Eurozone continues to deteriorate. Find out what the drivers behind this deterioration are.
BCA Research's US Equity Strategy service downgraded Semiconductors to underweight for the following reasons: Weakening global growth: Global semiconductor sales move in lockstep with economic growth. Global growth continues to decelerate. The…
According to BCA Research’s European Investment Strategy service, the earnings outlook of Eurozone equities will continue to deteriorate over the coming two quarters despite the improvement in real economic activity. Earnings and revenue growth are…
According to BCA Research’s US Equity Strategy service, the outperformance of Growth sectors most likely has run its course. The team has opened an overweight in Growth vs. Value in April. Since then, the trade is up 2.73%. They are now closing this…