As Wall Street earnings season descends, investors scan the far horizon
NEW YORK — More than 90 of the biggest US companies will report results this week, giving a clearer picture of what is expected to be the fourth straight quarter of declining profits.Based on analysts’ forecasts for companies in the S&P 500 index, Thomson Reuters predicted that adjusted earnings per share for the second quarter were down 4.7% from a year earlier. That follows a 5% drop in the first quarter and would be the fourth straight period of declines.Revenue, meanwhile, is expected to slip 0.8%, marking the sixth straight quarter of declines, according to Thomson Reuters."We are in a slow, weak-growth environment," said Jonathan Golub, senior equity strategist at RBC Capital Markets, who recently cut his earnings forecast for the S&P 500, saying profits would be slightly lower for the year. "What investors are looking for is confirmation that we are not stuck in negative territory." Several factors are weighing on earnings. Collapsing oil prices are taking a toll on energy co...
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