As we are now in the middle of April, with the first quarter of 2020 now behind us, it is that time where companies publish their financial statements from Q1. Earnings seasons is where most if not all public companies post their performance numbers to shareholders, these numbers show how the company has performed financially, and has a direct impact on the share price. A positive or better than expected Q1 will mean the company’s value will increase. Whereas a below par performance, or worse than expected statements will see a decrease in share price.
Earnings will be published over the course of the next few months and will provide the first indication of business performance during this time of crisis.
Why is this earnings season important?
Since the pandemic hit, the majority of the impact we hear about have been in news headlines. Whether on the closure of day to day business. Leading to the unemployment of staff associated with these businesses, and the knock on effect thereafter. Besides jobless and unemployment claims, we have not yet seen the true data as it relates to the bottom line of business.
This is why many are anticipating this earnings season. As it will not only shed light on what has happened, but give us an update on what is happening now and could yet be in store for us in the near future. Many workers and those who have been told to stay at home may believe that once the lockdown finally ends, with enough tests for all, and even possibly a vaccine, that we may see life return to “normal”.
However, life could look much different especially in regards to employment, as many would lose work. This will come as more and more businesses either go bust or face an uphill struggle to take advantage of the stimulus packages offered by their home nation. This will likely be due to the fact that, there will be an innumerable queue of companies in line to receive such support, before beginning in a position to re-open and resume operations.
So which companies are due to announce performance, and what should workers of these companies look for?
Which companies will be publishing earnings?
To kick-off earnings reports yesterday. JP Morgan and Johnson were the 2 biggest companies to announce results. JP Morgan, one of the worlds biggest banks saw performance down 69% compared to this time last year. Another titan in financial services, Wells Fargo saw performance down 90% as they reported earnings.
Johnson and Johnson however saw it’s share price rise as it’s performance came in better than expected. The company which says it’s hoping to develop between 600 – 900 million doses of it’s COVID-19 virus by April next year will mean workers in their factories will likely continue and the potential for an increase in staff also exists.
For those looking to track which company could be announcing their earnings, there are free earnings calendars available online, and they will show every company due to announce Q1 performance.