CIBC World Markets:Earning Recession Over
- Tuesday, January 26, 2010, 7:18
- Carousel, Finance
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Author: svilen001
When the final earnings report are in for the last quarter of 2009, TSX operating profits should be up 43%, which will be the first increase since the third quarter of 2008 notes a new report from Canadian Imperial Bank of Commerce (CIBC) World Markets Inc.
The report finds that earnings in seven of ten major TSX market sectors are expected to show improvement on the year.
Peter Buchanan, senior economist in CIBC’s latest TSX Earnings Watch noted that the gain for the TSX ¬
Buchanan noted that revenue growth has and continues to be a prime concern on both sides of the border. With Canada’s inflation rate is just 1.3% in the 12 months through December. Many firms are suffering from a lack of pricing power, putting pressure on revenue performance.
Overall, the greatest challenge might not be this quarter but rather the targets that have been made for the rest of 2010.
With reports stating that the economy will be doing much better by the end of 2010, we should be able to meet the targets set throughout the year, however nothing is for certain and an unexpected circumstance might come up which negatively affect us.
The recent positive earnings revisions by analysts in both the U.S. and Canada means that much of the recent improvement in the economy and commodity prices may have already be prices into stock variations.
The means that it could limit the potential for a further strong stock rally on the upcoming reports.
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Sensei has written 1086 stories on this site.
My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top.
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