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This week, investors will once again turn their attention to corporate results, as the first quarter earnings season kicks off this week.
We take a look at some the key earnings this week, starting with bellwether Alcoa.
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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