November 7, 2016
Earnings for the largest U.S. companies rebounded in Q3 2016, creating a ray of hope and profits following four quarters of contraction. Even with this good news, some executives are wary of 2027.
Earnings for the quarters are anticipated to increase by 7.5%, with revenues up by 4.5% year over year, according to Thomson Reuters. Improvements were led by technology, basic materials, financial companies, consumer discretionary firms and utilities. Real estate, health care and financial businesses demonstrated the most revenue improvement. As can be expected, the energy sector took the largest hit.
But global concerns are putting a damper on the good news, according to Jim Russell with Bahl & Gaynor Investment Council. As a result, companies are being cautious when it comes to Q4 and 2017 guidance, he added.
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