SaxoTV

Earnings Season: JP Morgan, Google and GE banking on profits

457 views
July 13, 2015 alstom, bank, banking, banking equity, banking industry, banking sector, banking system, banks, banks stocks, china, china economy, china gdp, china growth, china manufacturing, china politics, chinese economy, earning, earning reports, earnings, earnings 2015, earnings data, earnings earnings season, earnings expectations, earnings multiples, earnings per share, earnings ratio, earnings reports, earnings results, earnings season, earningseason, earningsreports, earningsseason, earningsweek, equities, equities saxo, equities trading, equity, equity bubble, equity index, equity market, equity markets, equity portfolio, equity portfolios, equity research, equity strategy, equity trading, ge, general, general electric, google, google earnings, google equity, google investing, google investment, google profit, google profits, google results, google returns, google revenue, google share price, google shares, greece, greece bailout, greece crisis, greece debt, greece debt crisis, greece european union, greek, greek bailout, greek crisis, greek debt, greek economy, greek negotiations, greek talks, greekdebt, greexit, grexit, jp morgan, jp morgan chase, jp morgan earnings, jp morgan results, jp morgan shares, jp morgan stock, saxo bank, saxo tv, street, tech, tech business, tech companies, tech company, tech firm, tech firms, tech industry, tech news, tech sales, tech sector, tech stocks, technical, technical analysis, technologies, technology, technology companies, technology industry, trading, tradingfloor.com, wall street
Earnings Season really gets under way this week with more than 70 large multi-nationals reporting for Q2. 

Saxo's Mads Koefoed says technology giant Google is expected to show solid improvement in earnings per share (eps) compared to a year ago but a decline in revenue. Up until 2013, the company showed revenue growth of between 15-20%. However, since then its market share has begun to decline which Koefoed expects to continue. He says the firm needs to focus on mobile ad revenue instead of desktop.

JP Morgan Chase beat analysts' expectations by almost 14% in Q1. Mads notes that Wall Street loves this bank despite consensus that there will be a 7% drop in earnings year-on-year (yoy). The company will also be a good indicator of how other banks have faired in Q2, given the market volatility relating to both China and Greece.

General Electric reports on Friday and Mads says this is the chance for the market to see how it has been performing since it began its restructuring programme. In the Spring, the multinational announced that it was moving back to its industrial roots. It plans to divest USD 200 billion worth of assets and has already managed USD 23 billion. Mads says its bid for French company Alstom is key to helping it turnaround, but the EU is yet to approve this deal.