Third season of Ganancias
Analysts
Companies discuss important aspects of their quarterly 10-Q report. That is a form containing financial statements, management's discussion and analysis, disclosures and internal controls for the previous quarter. In addition, they analyze the annual 10-K report; that is a comprehensive report filed annually by a company. This company must be publicly traded on its financial performance and is required by the U.S. Securities and Exchange Commission (SEC) particularly from the management's discussion and analysis (MD&A) section.
Analysts can use the financial information to perform a fundamental analysis of each company and obtain a current price valuation.
On the other hand, analysts see a 29.6% year-over-year increase in earnings for S&P 500 companies; data realized in the third quarter, according to IBES (Institutional Brokers' Estimate System). This is down from earnings growth of 96.3%; Q2 data, when many companies experienced higher performance compared to pandemic lows. The numbers are normalizing as economies began to reopen a year ago.
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Stock market investors are looking for signals on corporate financials; as the third quarter earnings release season begins. While expected earnings have supported markets after falling for the past four quarters, this time they may not, Bloomberg reports. While several companies reported blockbuster-worthy earnings last quarter. Stocks, including those in the technology sector, forecast a weaker outlook for the coming months. Pressure points included rising inflation and the reopening of the global economy that comes with high demand.