Today the Wall Street Journal published an article regarding the outlook for Q2 2013 earnings, titled “Earnings in Spotlight as Fed Jolt Fades.” The article contains various statistics and commentary regarding projected earnings and revenue.
Here are two notable excerpts:
“We’d be very surprised if there was a huge pop in earnings,” says Wayne Lin, who helps oversee $9 billion as chief strategist at Legg Mason LM -0.69% Global Asset Allocation. “If you don’t have top-line growth and your margins are at historically high levels, where are you going to get your earnings from?”
After years of boosting earnings through cost-cutting, many companies need revenue growth in order to keep the bottom line growing, analysts say. But that is a daunting challenge because of still-sluggish economic growth. Revenue at companies in the S&P 500 is expected to climb just 1% in the second quarter compared with a year earlier, according to FactSet.
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