Not exact matches
Earnings coverage was better due to more stringent bank regulation and
lower interest rates.
The German bank has struggled over the last few years due to weak
earnings, a
low -
interest rate environment and penalties on past misconduct.
Timmer: Yeah, so it's
interesting because generally the
earnings estimates, if you look at the aggregated consensus numbers, they tend to start high and drift
lower.
Interest coverage measures a firm's ability to make interest payment on its debt through earnings - the lower the ratio, the less likely the firm is able to make interest
Interest coverage measures a firm's ability to make
interest payment on its debt through earnings - the lower the ratio, the less likely the firm is able to make interest
interest payment on its debt through
earnings - the
lower the ratio, the less likely the firm is able to make
interest interest payment.
The recent popularity of junk goes counter to multiple warnings from Wall Street experts who believe the sector is in trouble due to looming
interest rate hikes and declining
earnings for companies particularly at the
lower end of the credit spectrum.
Earnings before
interest, taxes, depreciation and amortization (EBITDA), adjusted for one - offs, were set to decline by a
low - single - digit percentage and not match the prior - year level, as previously forecast.
«S&P 500 price - to -
earnings is demanding excluding mega-caps and likely dependent on
interest rates staying
low versus history,» says David Bianco, chief U.S. equity strategist at Deutsche Bank.
European stocks closed
lower on Wednesday as investors waited for the U.S. Federal Reserve's statement on its
interest rate decision and digested new corporate
earnings.
«Now, we have
low earnings volatility,
low GDP volatility, and
low interest rate volatility, so investors view things as extremely safe,» says Kalesnik.
«We believe the bias for stock prices in general remains to the upside, underpinned by a growing economy,
low interest rates and increasingly, cheaper oil... With operating margins at elevated levels, top line growth is poised to more quickly bleed through to the bottom line, thus supporting
earnings.»
Though an improving economy later this year could lead to a pickup in loan demand and raise
earnings potential for banks, it's true that traditional banks are struggling with
low rates and declining net
interest margins.
The ad argues that «Stocks should soon be benefiting from the sweet spot of a friendly Fed:
low interest rates and improved
earnings visibility.»
Our view is that the equity markets have
low volatility because we have been experiencing
low volatility in the things that drive equity prices —
interest rates, economic data and corporate
earnings.
Interest rates can affect stocks because when rates are
low, people are more willing to borrow money that they may use to buy products and services, which can help buoy company
earnings and stock prices.
The bull market is alive and kicking due to optimism about
earnings growth,
low interest rates, and a business friendly environment that has cut taxes and reduced red tape.
Over the past 30 years, during which
earnings growth hasn't been stellar, market values have instead been driven by Federal Reserve - induced
low interest rates leading to corporate share repurchase strategies and merger and acquisition activity.
Lower interest rates tend to reduce bank
earnings.
Interest coverage (the ratio of corporate earnings to interest obligations) is currently near the lowest levels in
Interest coverage (the ratio of corporate
earnings to
interest obligations) is currently near the lowest levels in
interest obligations) is currently near the
lowest levels in history.
Zaitech - practicing firms obtained
low -
interest loans and used them to purchase stocks and real estate, which surged and helped the firms to report blowout
earnings as long as asset prices continued to rise.
Year - to - date PTPP
earnings of $ 165.9 million increased 6 % as the positive impact of very strong 9 % loan growth was partially offset by an 11 basis point decrease in net
interest margin, an 8 % increase in non-
interest expenses and 6 %
lower non-
interest income.
Earnings growth primarily resulted from higher net
interest income and
lower preferred share dividends, partly offset by
lower non-
interest income, increased non-
interest expenses and a marginally higher provision for credit losses.
Net
interest income and non-
interest income both increased 7 %; however, the combined impact of moderate growth of non-
interest expenses, increased provisions for credit losses, acquisition - related fair value changes and higher preferred share dividends resulted in
lower earnings.
These power technical signals give us more confidence in our constructive fundamental view for higher
earnings and continued
low interest rates, which together argue for higher valuations.
It doesn't help that 10 - year bond yields are still
lower than the prospective operating
earnings yield on the S&P 500 (the «Fed Model»), not only because the model is built on an omitted variables bias (see the August 22 2005 comment), but also because the model statistically underperforms a simpler rule that says «get in when stock yields are high and
interest rates are falling, and get out when the reverse is true.»
This would result in
earnings before
interest, tax, depreciation and amortisation likely coming in at the
lower end of a $ 5 million to $ 6 million range previously foreshadowed.
The movement of benchmark
interest rates, coupled with significantly
lower lending volumes and surging prices for collateral, could make Q3 ’17 a very
interesting — and treacherous —
earnings period for financials with exposure to MSRs and other aspects of residential housing finance.
As a result, U.S. stocks have reached many all - time records this year, supported by double - digit
earnings growth for the S&P 500, better revenue growth and still -
low interest rates.
Over time, the stock market has reached new records, powered by economic and
earnings growth.2 We expect both to continue: The domestic economy is picking up a little speed, helped by improving growth in the rest of the world, and company
earnings have benefited from better sales, the weaker dollar and still -
low interest rates.
Combined with a
lower tax rate and less
interest expense,
earnings per share increased 72 % year over year.
While many people believe that growth in the years ahead will be
lower than it has been in the past, we can also observe that cash per dollar of
earnings has increased over the years for S&P 500 companies as returns on capital have increased, while the cost of capital has fallen with
lower interest rates.
With
interest rates so
low, strengthening the balance sheet produces very little incremental
earnings.
«We think the recently
lowered dividend payout is sustainable, providing investors with an attractive 6 per cent fully franked yield at current prices... we view the risks facing Telstra as more than reflected in the current stock price, trading at 12 times forward
earnings per share and 5.5 times
earnings before
interest, tax, depreciation and amortisation,» the analysts said.
There is still further upside for valuations in 2018 due to
low interest rates, strong corporate balance sheets and high quality
earnings.
The analysis by State Comptroller Tom DiNapoli finds the recent gridlock in Congress, higher
interest rates, and the JP Morgan $ 13 billion dollar settlement over bad mortgages is contributing to
lower earnings and profits for New York's financial industry.
The analysis by New York state Comptroller Tom DiNapoli finds the recent gridlock in Congress, higher
interest rates, and the JP Morgan $ 13 billion settlement over bad mortgages is contributing to
lower earnings and profits for New York's financial industry.
Full year
earnings before
interest, taxes, depreciation and amortization (EBITDA) are expected to be in a range of $ 150 to $ 180 million,
lower than forecast by the company in December.
Despite efforts to contain costs, the poor holiday season prompted the bookseller to
lowered its fiscal 2017 profit forecast for its retail business (which excludes its money losing Nook e-reader business): it now expects
earnings before
interest, taxes, depreciation and amortization to be $ 225 million in that part of its operations, down from a forecast made not even six weeks ago retail EBITDA would range from $ 240 million to $ 280 million.
The macadamia nuts were already getting an excellent price on the market, so this group of farmers could in principle have pooled some of their
earnings and made them available so that more people could buy trees through a
low -
interest loan.
After years of being forced to operate with
lower commissions and volatility,
interest rate increases will provide a bump to
earnings.
As such, all
earnings are returned to their members in the form of high -
interest savings and
low rate loans.
The bulls argue that this premium is justified (or non-existent) because
interest rates are
low,
earnings will stay elevated because US companies earn a greater share of income internationally, and the market has peaked at higher Shiller PEs in the past: 1929 peaked 33x, 2000 peaked at 44x, Japan got to 100x in the 1990s, and China has traded at 100x this year.
So in general terms, at times of artificially
low interest rates, growth companies — which have more future
earnings than they have current
earnings — tend to be more attractive to investors than value companies.
The historical median of 14.51 x cyclically - adjusted
earnings happened in periods where
interest rates were higher, so naturally
earnings multiples were
lower.
Low financial leverage as reflected by low interest cost in relation to earnings available to pay intere
Low financial leverage as reflected by
low interest cost in relation to earnings available to pay intere
low interest cost in relation to
earnings available to pay
interest.
Canada's big five banks will likely report record
earnings in 2014, as
low interest rates keep fueling loan demand.
In addition, in anticipation of higher rates, many banks have begun to reposition their balance sheets toward variable rate loans, so they won't be locked into
low interest rates, and they're hedging their
interest rate exposure, according to banks» most recent
earnings reports and
earnings calls with analysts.
Dividends of mortgage REITs have declined substantially over the last two years as companies adjusted their dividend payouts in light of higher
interest rate volatility and
lower earnings forecasts.
The initial
interest rate of an Adjustable Rate Mortgage is
lower than that of a fixed rate mortgage, consequently, a good option to consider, if you plan to own your home for only a few years, is a Adjustable Rate Mortgage; or, the prevailing
interest rate for a fixed rate mortgage is too high; or, you expect an increase in future
earnings.
Jeremy Siegel explains how stabilizing energy stocks,
low interest rates, and improved
earnings could lead to a 15 % increase in stocks.
Even
low expense ratios can impact your
earnings, and your ability to take advantage of compounding
interest, over the long term.