US Earnings Release Recap And Outlook

The focus of investors during the current period is directed to the US company’s earnings results for the last quarter of the year 2022, as it was a year full of

economic and political events that affected the performance of companies in general.

The following is a calendar of the results of the major companies that will announce their earnings next week:



The terms inflation and recession were the most prevalent during the year 2022, as inflation in the United States reached its highest level in 40 years, which made

the US Central Bank take a strict monetary policy in order to fight inflation, and the Federal Reserve raised interest rates to 4.5% during 2022, which increased

the possibility of an economic recession, how did this affect the results of the US companies?

During 2022, US stocks recorded their largest annual loss since the 2008 financial crisis, with the S&P 500 index closing down by 20%, and technology stocks

were particularly affected, with the Nasdaq index falling by about 33% and being the most affected, given that technology companies are exposed to fears of

higher interest rates because many of them are evaluated on the basis of expected profits that will be achieved for years in the future.

As a result of economic uncertainty, major companies such as Twitter, Meta, Amazon, Microsoft, and Goldman Sachs Bank announced layoffs and slowed the pace

of hiring new employees in order to increase profit margins and reduce costs. Profits are expected to fall 2.8% year on year, according to Wall Street estimates in

the fourth quarter, revenue for S&P 500 companies fell only 4%. According to previous Fed statements interest rates are expected to remain high throughout

2023, and inflation will remain higher than the Fed's target of 2% Therefore, analysts expect that corporate profits will continue to be under pressure as a result

of high inflation and as a result of high interest rates.


The content published above has been prepared by CFI for informational purposes only and should not be considered as investment advice.  Any view expressed does not constitute a personal recommendation or solicitation to buy or sell.  The information provided does not have regard to the specific investment objectives, financial situation, and needs of any specific person who may receive it, and is not held out as independent investment research and may have been acted upon by persons connected with CFI.  Market data is derived from independent sources believed to be reliable, however, CFI makes no guarantee of its accuracy or completeness, and accepts no responsibility for any consequence of its use by recipients.