Tag: earnings season

Earnings Estimates Will Be Revised Downward

Earnings Estimates Will Be Revised Downward

On March 31st we told investors to be prepared for weak earnings. After almost 30 years in the capital markets one lesson learned is that sellsiders are slow to publish bad news. Therefore it is not terribly difficult to predict that the sellside will lower EPS estimates for 2023 and beyond when the June and … Continue reading Earnings Estimates Will Be Revised Downward

Get Ready for EPS Misses

Get Ready for EPS Misses

One thing that's for sure is that many companies are hesitant to get in front of bad news. Given that inflation in all forms is not going anywhere, we expect many companies to report Revenue and Earnings shortfalls in April as March quarter results and 2022 full year outlooks are communicated to investors. Inflation has … Continue reading Get Ready for EPS Misses

TINA, ZIRP, The Future & The Retail Investor

TINA, ZIRP, The Future & The Retail Investor

Investors have lost their minds when it comes to high-flying stocks such as Tesla (TSLA, up 830% over 13 months), Shopify (SHOP, up 210% over 4 months), DataDog (DDOG, up 220% since the March lows), and many other names where valuations are based on anything but the fundamentals. Why? There Is No Alternative (TINA): The … Continue reading TINA, ZIRP, The Future & The Retail Investor

Earnings Calls – A Keyword Analysis

Earnings Calls – A Keyword Analysis

We ran a Natural Language Processing ("NLP")-based analysis of earnings calls from this week. We captured keywords and phrases from 23 earnings calls. Our report is sorted alphabetically by ticker symbol. Access the free report HERE. This analysis may be customized to capture certain keywords and phrases for any text-based document. https://soundcloud.com/ceorater

If We Are Being Honest

If We Are Being Honest

If we are being honest companies have near zero visibility into the short-term despite sell-side analysts' attempts to generate positive spin. We use last night's Google earnings call as an example. Google's Ad business deteriorated over the course of the March quarter from a year-over-year growth position to a "mid-teens" percentage Y-O-Y decline by the … Continue reading If We Are Being Honest

Tech Layoffs & The Mythical “V” Recovery

Tech Layoffs & The Mythical “V” Recovery

Headcount reductions continue. We have updated our list of recent Tech company layoffs. Access the Excel version HERE. The PDF version may be accessed HERE. It is difficult to imagine a snap economic recovery as companies continue to shed talented people. The mythical "V" recovery would require all components of the global economy to recover … Continue reading Tech Layoffs & The Mythical “V” Recovery

Earnings Summary: A Rational Approach To “Guidance”

Earnings Summary: A Rational Approach To “Guidance”

We were recently critical of companies that decided to completely withdraw their financial outlook given the economic uncertainty that has resulted from the ongoing COVID virus. The good news is that a number of companies are providing financial outlooks, albeit they are taking a conservative approach (which is entirely logical from our perspective). We reviewed … Continue reading Earnings Summary: A Rational Approach To “Guidance”

Earnings Season Thus Far: Lack of Color & Backbone

Earnings Season Thus Far: Lack of Color & Backbone

Earnings calls thus far have struck a similar tone XYZ CEO: "Let me begin by saying our thoughts are with..."XYZ CEO: "We are grateful for the opportunity to delight our customers during this difficult time. We got off to a good start in the months of January and February as we experienced healthy year-over-year growth. … Continue reading Earnings Season Thus Far: Lack of Color & Backbone

Enterprise Software 2020 Outlook

Enterprise Software 2020 Outlook

More Market Uncertainty Is Coming. However, Don't Paint with A Broad Brush. Align Yourself with Market Leaders. We expect Enterprise Software companies to provide conservative outlooks for the 2020 calendar year. We do not expect Enterprise Software companies to completely yank their respective 2020 outlooks as have other Technology companies. We anticipate negative investor sentiment … Continue reading Enterprise Software 2020 Outlook