International
17:33 3 June 2023
Post by: WBJ

Recession in profits finally catching up with private companies

Recession in profits finally catching up with private companies
Source: Photo by Árpád Czapp on Unsplash

According to Allianz Trade, while 62 percent of companies in Europe and the USA exceeded forecasts in the first quarter, this is mainly due to already lowered analyst estimates. Even though revenues increased year on year (+2.6 percent), profit growth remained at a negative level (-0.1 percent y/y), and the recession of private companies is getting closer, at least in the United States, where profits have already declined for two consecutive quarters. 

As expected, two sectors, particularly the maritime and energy sectors, experienced a significant quarterly decline due to profit normalization. In total, 10 out of 26 sectors managed to increase both sales and earnings per share (EPS), while eight sectors recorded year-on-year declines. Basic materials fared the worst. 

Corporate forecasts for the entire year 2023 have worsened, as only 25 percent of companies made upward adjustments during the season. However, a mild recovery is expected from the beginning of next year.

(WBJ)


recession
allianz trade

lifestyle

LifeStyle
13 days ago

Mercedes-Benz Unveils Sleek New CLA with Electric Power and AI Tech

LifeStyle
26 days ago

Klaudia Zioberczyk Advocates for Minimalism Amidst Rising Modeling Career

LifeStyle
1 month ago

Keeping Wealth Is Harder Than Earning It

LifeStyle
2 months ago

Politicians Should Have a Sense of Humor

Book of Lists

Book of Lists
4 years ago

The largest Polish companies under the Book of Lists microscope! Book of Lists 2020/2021 certificates have been awarded.

Book of Lists
5 years ago

25th jubilee edition of Book of Lists – project start