What analysts and investors want to hear from CFOs this earnings season
The first quarter benefited from a pull-forward of demand ahead of anticipated tariffs. In contrast, the second quarter will test companies' ability to manage margin pressure, supply chain disruptions, and evolving trade policy risks.
Major U.S. banks are among the first to report results this week. For all companies reporting, analysts will be 'laser-focused' on how President Donald Trump's import taxes are affecting corporate profits, according to Morningstar. A key theme is the impact of tariffs and trade policy uncertainty, with analysts closely watching for margin pressures, signs of slowing consumer demand, how companies are preparing for new tariffs, and how they are handling levies that have already been implemented.
Markets have remained relatively calm heading into Q2, with major indices like the S&P 500 and Nasdaq recently reaching new highs. Morningstar notes that Q2 earnings are expected to reveal trends among firms in tariff-affected industries. Companies with higher costs and tighter margins may be forced to absorb more tariff expenses, while those with stronger competitive advantages may be able to pass more costs onto consumers.
The momentum that propelled the S&P 500 to nearly an 11% gain in Q2 and more than 7% year-to-date will be tested this week, according to Saira Malik, chief investment officer at global investment manager Nuveen. Malik highlighted in a LinkedIn post on Monday two key dynamics: Q2 earnings reports from the financial sector, and a series of U.S. economic data releases, such as the Consumer Price Index (CPI) scheduled for release this morning.
Malik adds, 'While overall earnings growth is expected to decelerate from last quarter, estimates have stabilized in recent weeks after falling sharply in early April. Still, the Q2 earnings bar is relatively low.'
On the economic front, Josh Hirt, senior U.S. economist at Vanguard, expects core CPI to increase 0.25% month over month (2.9% year over year) and headline CPI to rise 0.29% month over month (2.6% year over year), reflecting moderate strength following May's soft print. 'While tariff-related pressures are beginning to show in select goods categories in the PCE, the overall pass-through into CPI remains limited for now as firms hold off on retail price hikes,' he said in an emailed statement.
Regarding CFO sentiment, Deloitte's Q2 2025 CFO Signals report, released last week, found that growth expectations declined across every key operational metric, with finance chiefs lowering projections for revenue, earnings, and capital investments.
However, Steve Gallucci, global and U.S. leader of Deloitte's CFO Program, described the current environment as a recalibration, not a retreat. Finance leaders are doubling down on fundamentals: sharpening focus on growth drivers, managing controllable risks, and staying active in M&A.
Sheryl Estradasheryl.estrada@fortune.com
This story was originally featured on Fortune.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Nasdaq, S&P futures lifted by chip stocks after wild session
(Reuters) -Futures tracking the Nasdaq and the S&P 500 rose on Thursday, as strong results from Taiwan's TSMC boosted chipmakers after a rollercoaster session marked by concerns about the Federal Reserve's independence. At 5:45 a.m. ET, Dow E-minis were down 24 points, or 0.05%, S&P 500 E-minis were up 5.75 points, or 0.1%, and Nasdaq 100 E-minis were up 41.25 points, or 0.18%. U.S. chipmakers rose in premarket trading after TSMC, the world's main producer of advanced AI chips, posted a record quarterly profit, saying demand for artificial intelligence was getting stronger. U.S.-listed shares of TSMC gained 4% and Advanced Micro Devices rose 1.2%. Marvell inched up 0.7%, while Nvidia and Super Mirco Computers gained 0.7% and 1.3%, respectively. Netflix edged 0.5% higher ahead of its quarterly results after markets close. "The market is underestimating the potential for a big U.S. earnings beat in the second quarter. Recent data on economic activity shows few signs of troubling weakness," HSBC analysts said. Wall Street ended the previous session with modest gains, with the Nasdaq soaring to yet another record high. Markets briefly tumbled in the previous session - dropping as much as 1% - after reports surfaced that President Donald Trump was considering firing Federal Reserve Chair Jerome Powell. Although Trump swiftly denied the reports, his ongoing criticism of the central bank and hints at possible action kept investors on edge about the Fed's independence. Fed officials have resisted cutting rates until there is clarity on whether Trump's tariffs on U.S. trading partners reignite inflation. The media reports on Wednesday sent odds of a September rate cut soaring to 66%, up from 54% earlier in the day. Currently, traders see a 55% chance of cutting in September, while a July move is almost completely off the table, according to CME's FedWatch tool. Meanwhile, attention also remained on looming tariffs, with an August 1 deadline threatening higher levies for many U.S. trading partners. Trump told Real America's Voice on Wednesday that the U.S. is closing in on a deal with India and may soon reach an agreement with Europe as well. Investors will also be eyeing June retail sales data, set for release at 8:30 a.m. ET, for fresh insight into consumer spending. At least four Fed officials, including Board Governors Adriana Kugler and Lisa Cook, are slated to speak. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 minutes ago
- Yahoo
Ocugen to Host Conference Call on Friday, August 1 at 8:30 A.M. ET to Discuss Business Updates and Second Quarter 2025 Financial Results
MALVERN, Pa., July 17, 2025 (GLOBE NEWSWIRE) -- Ocugen, Inc. (Ocugen or the Company) (NASDAQ: OCGN), a pioneering biotechnology leader in gene therapies for blindness diseases, today announced that it will host a conference call and live webcast to discuss the Company's second quarter 2025 financial results and provide a business update at 8:30 a.m. ET on Friday, August 1, 2025. Ocugen will issue a pre-market earnings announcement on the same day. Attendees are invited to participate on the call using the following details: Dial-in Numbers: (800) 715-9871 for U.S. callers and (646) 307-1963 for international callersConference ID: 9627149Webcast: Available on the events section of the Ocugen investor site A replay of the call and archived webcast will be available for approximately 45 days following the event on the Ocugen investor site. About Ocugen, Inc. is a pioneering biotechnology leader in gene therapies for blindness diseases. Our breakthrough modifier gene therapy platform has the potential to address significant unmet medical need for large patient populations through our gene-agnostic approach. Unlike traditional gene therapies and gene editing, Ocugen's modifier gene therapies address the entire disease—complex diseases that are potentially caused by imbalances in multiple gene networks. Currently we have programs in development for inherited retinal diseases and blindness diseases affecting millions across the globe, including retinitis pigmentosa, Stargardt disease, and geographic atrophy—late stage dry age-related macular degeneration. Discover more at and follow us on X and LinkedIn. Cautionary Note on Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding qualitative assessments of available data, potential benefits, expectations for ongoing clinical trials, anticipated regulatory filings and anticipated development timelines, which are subject to risks and uncertainties. We may, in some cases, use terms such as 'predicts,' 'believes,' 'potential,' 'proposed,' 'continue,' 'estimates,' 'anticipates,' 'expects,' 'plans,' 'intends,' 'may,' 'could,' 'might,' 'will,' 'should,' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Such statements are subject to numerous important factors, risks, and uncertainties that may cause actual events or results to differ materially from our current expectations, including, but not limited to, the risks that preliminary, interim and top-line clinical trial results may not be indicative of, and may differ from, final clinical data; that unfavorable new clinical trial data may emerge in ongoing clinical trials or through further analyses of existing clinical trial data; that earlier non-clinical and clinical data and testing of may not be predictive of the results or success of later clinical trials; and that that clinical trial data are subject to differing interpretations and assessments, including by regulatory authorities. These and other risks and uncertainties are more fully described in our periodic filings with the Securities and Exchange Commission (SEC), including the risk factors described in the section entitled 'Risk Factors' in the quarterly and annual reports that we file with the SEC. Any forward-looking statements that we make in this press release speak only as of the date of this press release. Except as required by law, we assume no obligation to update forward-looking statements contained in this press release whether as a result of new information, future events, or otherwise, after the date of this press release. Contact:Tiffany HamiltonAVP, Head of
Yahoo
6 minutes ago
- Yahoo
PepsiCo earnings beat estimates despite "challenging" business environment
- PepsiCo (NASDAQ:PEP) has reported core profit for the second quarter that topped estimates, as the food and beverage group said its international unit showed signs of momentum despite a "challenging" operating environment. Consumer staples companies like Pepsi have been grappling with a host of headwinds, including worries on Wall Street that sweeping U.S. tariffs will lead many shoppers to rein in spending and seek out cheaper options at the supermarket. Concerns have also swirled around potential burdens from American health regulators, as well as changing consumer habits, driven by the possibility that the emergence of new obesity drugs could curb appetites for the snacks crucial to Pepsi's results. In a statement, CEO Ramon Laguarta said Pepsi's North America businesses have pushed for more product innovation and cost savings as they attempt to improve their "execution and competitiveness" in the face of these trends. Organic revenues at the region's foods unit slipped by 2%, while beverage division sales edged up by 1%. But Pepsi's international beverages franchise posted a 5% sales increase, while revenues in Latin America and Europe, Middle East and Africa moved up by 6% and 7%, respectively. Group-wide net revenue in the 12 weeks ended on June 14 also edged up by 1% versus a year ago to $22.73 billion, beating projections of $22.32 billion. 'We're encouraged by the acceleration in our net revenue growth versus the previous quarter with our businesses effectively navigating through a challenging environment," Laguarta said. Core earnings per share at the firm behind brands like Lay's potato chips and Mountain Dew soft drinks came in at $2.12, down from $2.28 in the previous year but above Bloomberg consensus expectations. Meanwhile, Pepsi backed its outlook for a low-single-digit uptick in annual organic revenue and core constant-currency per-share income "approximately even with the prior year." It slashed its expectations for a foreign-exchange related hit, saying it now anticipates a headwind of around 1.5 percentage points to annual net revenues and core earnings per share. Pepsi had previously guided for a negative impact of about 3 percentage points. Shares of Pepsi were slightly higher in premarket U.S. trading on Thursday. Related articles PepsiCo earnings beat estimates despite "challenging" business environment After soaring 149%, this stock is back in our AI's favor - & already +25% in July Apollo economist warns: AI bubble now bigger than 1990s tech mania Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
