Tags: Corporate | Profits | US | Economy

Corporate Profits Run Strong as US Economy Picks Up

Thursday, 01 May 2014 02:48 PM

MasterCard Inc., Cigna Corp. and Exxon Mobil Corp. all posted profits that topped analysts’ estimates Thursday, as consumer spending surged and the labor market improved in an otherwise anemic quarter for the U.S. economy.

Viacom Inc., ConocoPhillips and Yelp Inc., which reported Wednesday after the markets closed, also topped predictions, while Avon Products Inc. fell short. The pace at which Standard & Poor’s 500 Index first-quarter earnings exceeded estimates stands at 75 percent for the season so far, according to data compiled by Bloomberg. About 70 percent have reported.

Consumer spending rose in March by the most in almost five years as warmer weather brought shoppers back to auto-dealer lots and malls, a sign the U.S. economy is snapping back after growth stalled during a harsh winter. Job data released Wednesday also point to a recovery, while manufacturing expanded in April by the most this year.

“Our tone has been fairly optimistic about the labor market in the U.S.,” said Jan Siegmund, chief financial officer at Automatic Data Processing Inc., the private payroll-processing company known as ADP. Job creation is “solid and broad-based.”

Figures from the Roseland, New Jersey-based ADP Research Institute Wednesday showed that companies added more workers in April than at any time in the previous five months. Among the bright spots were the South and the oil industry, Siegmund said in an interview Wednesday.

Exxon, Yelp

Exxon Mobil, the Irving, Texas-based oil company, posted profit that fell less than analysts anticipated as international sanctions against Russian interests clouded efforts to tap some of the world’s largest crude reserves. Meanwhile MasterCard, the second-biggest payments network, benefited from an increase in customer spending and New York-based Viacom gained from channels including Comedy Central.

Yelp’s quarterly loss was smaller than analysts anticipated and the service for online restaurant and local business reviews boosted its full-year revenue forecast. The shares surged as much as 14 percent Thursday.

Companies downgraded expectations coming into the season, and two weeks ago analysts predicted that S&P 500 earnings gained just 0.7 percent last quarter while sales rose 2.6 percent, according to data compiled by Bloomberg. As the reporting season progressed, they raised their estimates back to 3.4 percent and 2.8 percent, respectively, as of April 25.

In all, 75 major companies posted results Thursday. Friday's main earnings include Berkshire Hathaway Inc., Chevron Corp., CVS Caremark Corp. and Estee Lauder Cos.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
StreetTalk
MasterCard Inc., Cigna Corp. and Exxon Mobil Corp. all posted profits that topped analysts' estimates Thursday, as consumer spending surged and the labor market improved in an otherwise anemic quarter for the U.S. economy.
Corporate, Profits, US, Economy
395
2014-48-01
Thursday, 01 May 2014 02:48 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved