Confession Season Kicks OffThe corporate confessional season already has started. A string of U.S. corporations -- from industrial giants to second-tier firms -- have warned revenues or profits will fall below expectations.
The stock markets wobbled last week in the wake of such announcements from companies like chemical giant DuPont Co. (NYSE:DD - news), which warned earnings would be 15-17 cents below expectations in the second half, and semiconductor equipment maker SpeedFam-IPEC Inc. (NasdaqNM:SFAM - news), which warned of an upcoming operating loss versus expectations of a 12-cent profit. Others that came clean ahead of the earnings reporting season include grocery market chain Albertson's (NYSE:ABS - news), clothes retailer Gap Inc. (NYSE:GPS - news) and electronics retailer Circuit City (NYSE:CC - news).
Earnings warnings for the third quarter have come so far from 110 companies, up sharply from 69 at a similar point in the second quarter, says Charles Hill, research director for market tracker First Call/Thomson Financial.
What's worrisome is that more large companies have warned of profit shortfalls than in the preceding quarter, Hill said. But it may be too early to read too much into those figures, he added in a report on earnings.
Последнее больше всего на самом деле может быть настораживающим.