One of the biggest worries heading into second quarter earnings season was that companies would disappoint giving all the uncertainty that there is about global growth.
However, earnings season kick off on a positive note leaving many investors surprised. The results were another boost for investors who have spent much of the past two weeks worrying about fallout from the UK vote to leave the European Union.
Below are some of the companies which kicked off earning season with a bang and set the scene for a possibly better outlook for corporate earnings than most expected.
Alcoa
Last Monday Alcoa reported quarterly earnings and revenue that beat analysts' expectations.
The company posted adjusted second-quarter earnings per share of 15 cents on revenue of $5.3 billion.
Analysts expected the company to report earnings of about 9 cents per share on $5.2 billion in revenue, according to a consensus estimate from Thomson Reuters.
Yum Brands
Last Wednesday Yum Brands reported second-quarter earnings that beat analyst expectations, but its quarterly revenue came up shy.
The company reported adjusted earnings of 75 cents per share on $3.01 billion in revenue.
Analysts expected the company to report earnings of about 74 cents a share on $3.09 billion in revenue, according to a consensus estimate from Thomson Reuters
JP Morgan
J.P. Morgan Chase & Co. kicked off bank earnings season with better-than-expected results that pointed to underlying strength in the U.S. economy and a still-healthy consumer.
Chief Financial Officer Marianne Lake said the bank views Brexit as a political and economic challenge but not a financial crisis. The bank showed strength in its big credit-card and mortgage businesses, and Ms. Lake ticked through a list of reasons the U.S. consumer continues to hold up.
Citigroup
Citigroup reported quarterly earnings and revenue that easily beat analysts' expectations on Friday.
The company posted second-quarter earnings per share of $1.24, compared with $1.51 a share in the year-earlier period. Revenue for the quarter came in at $17.548 billion, against the comparable year-ago figure of $19.158 billion.
Daimler
Daimler said earnings rose 5.6 percent in the second quarter as deliveries at its Mercedes-Benz unit soared even as the company set aside money for airbag recalls and legal charges.
The company stuck to its forecast for full-year results, saying they will improve slightly from 2015.
Daimler said earnings beat market expectations "significantly" after a second quarter in which adjusted earnings before interest and taxes rose to 3.97 billion euros ($4.39 billion) in a preliminary tally, the automaker said in a statement.
This article is provided to Times of Malta by Calamatta Cuschieri. Mr Camenzuli is an Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, views and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.