Earnings Season Kicks Off Amid Pandemic as Companies Pull Guidance

Daily Trade

Some 180 companies in the S&P 500 index have pulled their earnings guidance because of novel coronavirus uncertainties limiting the visibility of investors and analysts, the Wall Street Journal reported over the weekend.

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Goldman Sachs (NYSE:GS), Netflix (NASDAQ:NFLX) and JPMorgan Chase (NYSE:JPM) unofficially kick off earnings season this week.

Corporate earnings among companies in the S&P 500 are expected to have fallen nearly 45% in Q2 YoY, according to analysts polled by FactSet, WSJ reported.

Profits are only expected to begin climbing in the first quarter of next year.

Even before the pandemic, JPMorgan CEO Jamie Dimon and Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) chairman Warren Buffett argued that offering financial guidance promotes a short-term view of corporate success.

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