Article / 06 February 2015 at 13:22 GMT

Earnings Watch: Will energy boost consumer stocks?

Head of Equity Strategy / Saxo Bank
Denmark
  • 80% of US companies have reported earnings
  • Strong USD has capped several companies' 2015 outlooks
  • Lower euro should boost export-oriented EU firms

By Peter Garnry

The earnings season is entering its final stage in the US, with 80% of companies having reported earnings as of next week. The overall conclusion is that US companies have delivered a strong earnings season across the board, with both earnings and sales surprising to the upside. 

The only negative thing is the stronger USD that has capped certain US companies' outlooks for growth and profits in 2015.

Exporters

Ships at the Port of Long Beach; a rising dollar has slowed down certain US companies 
and left export-oriented firms sensitive to further gains. Photo: iStock

In Europe, it is the same song of revenues disappointing and profits beating through cost-cutting, but that will all change as a lower euro works itself into the books of the export-oriented European companies. 

Interestingly enough, the overall tune from European CEOs has been muted, which stands in sharp contrast to rising consumer confidence, a lower euro and falling energy prices.

Consumer companies on tap

Next week, the most interesting earnings reports will come from the consumer-oriented market segment. Below we have listed the most interesting of these companies:

  • Monday: Nissan Motor, Hasbro
  • Tuesday: Coca-Cola, CVS Health, Reynolds American, Molson Coors Brewing, Omnicom Group
  • Wednesday: Reckitt Benckiser, Heineken, PepsiCom, Time Warner, Mondelez, Lorillard, Whole Foods Market, TripAdvisor
  • Thursday: L'Oreal, Christian Dior, Pernod Ricard, Renault, Publicis Groupe, Kraft Foods, Kellogg
  • Friday: Beiersdorf, Sands China

See the attached PDF for earnings releases next week.

— Edited by Michael McKenna

Peter Garnry is head of equity strategy at social trading leader Saxo Bank.
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2015-02-09_earnings

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