Business InsiderTop News

Cash is king as U.S. quarterly reporting season gains steam

imageStock Markets12 hours ago (Apr 17, 2020 05:55PM ET)

(C) Reuters. FILE PHOTO: Four thousand U.S. dollars are counted out by a banker at a bank in Westminster

By Noel Randewich

(Reuters) – As the U.S. quarterly earnings season picks up steam next week, investors will get an early glimpse of how companies are weathering the coronavirus outbreak, including the strength of their balance sheets.

Reports from major corporations including International Business Machines (N:IBM), Coca-Cola (N:KO) and Union Pacific (N:UNP) will reflect the initial effects of the crisis in the United States, and investors will pay close attention to their liquidity and ability to weather a steep economic downturn caused by the COVID-19 pandemic.

With little clarity on when the U.S. economy will reopen, companies of all sizes have been bracing for months of limited revenues.

At least 13 S&P 500 companies have cut or suspended their dividends, while several corporations have slowed capital spending and cut jobs and wages to save money.

Companies have also raced to raise as much credit as possible and preserve liquidity. AT&T (N:T), which reports its results on April 22, recently announced a $5.5 billion term-loan agreement to provide “financial flexibility”, and last month it shuttered 40% of its stores nationwide as a result of the health crisis.

Major airlines, including JetBlue Airways Corp (O:JBLU), Southwest Airlines Co (N:LUV) and Alaska Air Group Inc (N:ALK), which could report in the coming days, have said they would accept U.S. government aid to help them ride out the sharp drop in travel demand caused by the massive lockdowns. JetBlue and Alaska Air have not announced reporting dates.

The following graphic shows companies slated to report in the week of April 20, along with their cash and short-term investments in recent quarters.

(GRAPHIC: Companies’ cash – https://fingfx.thomsonreuters.com/gfx/mkt/bdwvkmxjvmn/Companies%20Cash.png)

(This story corrects sixth and seventh paragraphs to remove reference to specific reporting dates for JetBlue and Alaska Air Group. Corrects dates column in graphic)

Cash is king as U.S. quarterly reporting season gains steam

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!