Upcoming Q2 earnings reports have many investors worried about continued revenue growth at tech, media companies
Samsung warns profits will fall short of expectations, while media company reports may be a mixed bag
The third quarter of the year has begun and that means that the next few weeks will be filled with earnings reports. Samsung has already warned that it would miss investor expectations as its operating profit is likely to fall to 7.2 trillion won, a decline of 24.5 percent from last year.
For many companies, it is inevitable that earnings slide. Apple has been on an incredible run, reporting a quarterly net profit of $10.2 billion in April. But simple math dictates that continuing to record such gains in revenue and profit will become more and more difficult over time. On top of that, the lack of new products, and slowing PC sales have many concerned, one reason CEO Tim Cook went for a stock split.
Samsung’s problem is that it is not dominating the high end of the market, selling smartphones that can manage to pull in the kinds of profits Apple gets with the iPhone. One analyst said the fact that the Chinese can grab the low end of the smartphone business will impact Samsung going forward.
The Guardian Media Group reported full year earnings today, which were a mixed bag: decent digital growth, no print advertising collapse, but still bleeding red ink. This may be what we will see elsewhere, as well. Companies like the Tribune Company and Gannett are more and more separating out their results to highlight their broadcast properties, something not possible over at The New York Times Co.
The calendar for July will be full:
- Google – July 17
- Apple – July 22
- Microsoft – July 22
- Amazon – July 24
- Gannett – July 28
- The New York Times Co. – July 29