Since the fourth quarter of 2020, the S&P 500 has shown the lowest year-over-year profit growth. The slower rate of earnings growth for Q2 2022 can be explained by pointing to the extraordinarily robust earnings growth in Q2 2021 and persistent economic difficulties. According to the average forecast, revenue for S&P 500 companies would expand by 10.6% in Q1 2021 and earnings would climb by 5.7% in Q2. However, a closer inspection would show that the energy sector is expected to contribute the majority of these profits. The US dollar has risen 15.1 percent against a basket of other well-known currencies over the past year. As a result, US companies’ exports are less competitive abroad. Following disappointing earnings releases, big firms like Snap, AT&T, and Delta Air Lines have seen rating downgrades.
Insider Monkey looks at 10 notable companies analysts are downgrading after weak earnings reports. Wipro Limited’s Q1 FY23 revenue increased by 9.8% to $2.7 billion, falling short of the consensus projection. Six cents in GAAP EPS fell short of analysts’ expectations of eight cents. Colony Bankcorp, Inc. announced operating EPS of 30 cents and sales of $29.22 million for the second quarter of 2022. The company experienced less favorable variances in core expenditures and loan loss provision, which is why the analyst emphasized the company’s sharp operating EPS miss. On July 21, the business released its Q2 2022 results. Net revenues for Nokia Oyj increased by 11% year over year to $5.99 billion. The company kept its $24.02 billion to $25.25 billion forecast for total sales for the entire year. For the three months that ended on July 1, Seagate Technology Holdings Plc reported revenue of $2.63 billion. The adjusted EPS was reported at $1.59, a markedly lower figure than the $189 consensus projection. An internal investigation into the student loan servicing company’s compliance has been launched by Discover Financial Services. The company’s diluted earnings per share (EPS) fell from $5.5 in Q2 2021 to $3.96 in Q2 2022. For more details, click 10 Stocks Analysts Are Downgrading After Weak Earnings Reports.
Unsplash
