Market Wrap-up for Apr. 7 - Gearing up for Earnings Season

We take a look at some the key earnings this week, starting with bellwether Alcoa.

• After the closing bell on Wednesday, Alcoa (AA ) will unofficially kick of this earnings season. Analysts are expected the aluminum giant to post earnings of 25 cents per share.
• Family Dollar Store (FDO ) will release its results before the opening bell. Estimates put FDO at an EPS of 73 cents.
• WD-40 Co. (WDFC ) will announce its earnings after the close. Analysts estimate earnings to come in at 72 cents per share.

• Walgreens Boots Alliance (WBA ) will report its quarterly results before the opening bell on Thursday. Analyst expect the company to post earnings of 94 cents per share.

Though the earnings season is just kicking off, investors should be aware of a few key issues and trends that may be seen this season. First and foremost, multinational companies and those that derive significant revenue from oversees will likely see profit margins squeezed due to a stronger dollar.

Weaker commodity prices, particularly low oil prices, will also have a hefty impact on certain energy related industries. You can expect big oil companies like Exxon (XOM ) and Chevron (CVX ), as well as other oil explorers and producers, to report lower revenues. Conversely, some companies that have high oil demands may benefit from lower expenses.

Overall, analyst expectations for first quarter profits for S&P 500 companies have fallen roughly 4.6% – the first such decline seen since 2012. If you recall last season, many companies issued lower or negative guidance for future quarters; analysts are expected those guidance to materialize this season and next.

We’ll be sure to keep you informed of all the earnings results this season for dividend-paying companies.

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