Earnings Quality

Sales tax holidays boost mall traffic and analysts’ optimism about apparel retailers amidst an August environment that is expected to generate a weaker growth rate in same-store sales than last year, of only 2.1%. In the wake of the news that July same-store sales were far better than expected, analysts now are predicting that the [...]

One clear message of this summer’s terrible drought in the U.S. Midwest is that there is a compelling need for advanced irrigation systems, particularly if it proves to be the case that global warming leads to more extreme weather events of this kind in the years to come. Farmers are struggling to preserve as much [...]

What is good news for Apple (AAPL.O) isn’t always great for its suppliers, as the deteriorating earnings quality at Murata Manufacturing (6981.OS) demonstrates quite clearly. Apple (AAPL.O) may be booming as a result of its sales of the iconic iPhone, but that good news isn’t necessarily great for its suppliers. Apple is notorious for putting [...]

E-commerce is growing steadily more important to retailers, and is likely to remain so given consumers’ focus on value. Once upon a time, the only way for consumers to shop for the latest consumer electronics goods and gadgets was to visit a showroom, where they could check out the latest features and options for themselves. [...]

Factors fluctuate between periods of under and out performance. In addressing the question of what worked in the trailing 12-months, our results indicate that factors based on analyst revisions, which investors tend to believe do not work well anymore, performed solidly. Factors based on earnings quality and valuation also produced positive returns. A common question [...]

European market turbulence is sending investors scurrying in search of safe havens. Stocks with standout earnings quality seem to offer what they seek: a combination of upside potential and solid returns. In the current market environment, there are few rewards for those brave enough to stick their necks out. In particular, given the ongoing turmoil [...]

Adidas AG (ADS.GR) is one of those rare entities: a European company offering solid earnings. Even better, it’s set to profit from the London Olympics. Athletes begin going for the gold at the London Olympics today – and Adidas AG (ADS.GR) is hoping that there will be a spillover in enthusiasm for the company’s range [...]

Takeover fever in the brewing industry may help explain why Tsingtao Brewing (0168.HK) shares currently command a premium price, but shrinking margins and high capital spending levels suggest that the company’s earnings might not be sustainable. Tsingtao beer may not have quite the same level of name recognition as Budweiser or Heineken, but nevertheless it [...]

June proves to be an even more disappointing month for retailers than analysts anticipated, with same-store sales eking out only a tiny 0.1% advance. Analysts and investors had braced themselves for what they expected to be the weakest growth in same-store sales posted by retailers in nearly three years in June. What they got was [...]

Facing tough year-ago comparisons, retailers battle macroeconomic headwinds to try to deliver June sales, but analysts predict SSS growth will be a meager 0.6% overall. Recent weeks have delivered a lot of weaker-than-expected pieces of economic data for investors to mull over. Now, they’ll need to brace themselves for another batch of underwhelming news in [...]