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Earnings Season Stock Guide

Earnings Season Stock Guide

Plus, Albemarle ends Liontown deal.

Photo by Aditya Vyas on Unsplash

Today is Monday, October 16, 2023.

The Early Bird Index today is 53.85.

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Earnings Season Stock Guide

Welcome to earnings season! Even if you’re a long-term investor, you should still pay attention to earnings to see how companies are performing and if there are any changes to the fundamentals of that company. This is according to Erick Mokaya, lead author for The Transcript, who explains in a new episode of the Early Bird podcast.

Going Right for the Good Stuff: When reading a financial earnings release, how can investors separate the fluff from important facts? Look at the data-driven insights first, according to Mokaya.

Big Picture: Expect more management teams to incorporate geopolitical issues in their earnings for this quarter, Mokaya said. This could include issues involving Israel, Ukraine, China, and Mexico. There are also going to be more mentions of reshoring, according to Mokaya.

Also: Artificial intelligence is another topic that you should expect companies to mention during earnings. While Mokaya said that enthusiasm surrounding AI has already peaked, some technology companies are now positioning themselves to talk about how they are productizing AI.

Zoom In: When it comes to earnings for banks and financial institutions, Mokaya said that there will be plenty of comments about credit quality as well as comments about buybacks and dividends.

Final Thoughts: How should investors prepare for earnings from the big tech companies? What advice does Mokaya have for investors when it comes to earnings? Find out by listening to a new episode of the Early Bird podcast.

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Notables

Notable Earnings Today: Charles Schwab (NYSE: SCHW), ServisFirst Bancshares (NYSE: SFBS), Yatra (Nasdaq: YTRA), FB Financial (NYSE: FBK), Vintage Wine Estates (Nasdaq: VWE), Equity Lifestyle Properties (NYSE: ELS), CrossFirst Bankshares (Nasdaq: CFB).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Demand Derivatives (Netcapital), Woods Acre Wines (Honeycomb), AKUA (Republic), ACME AtronOmatic (StartEngine), Creole Orleans (Honeycomb), Ola Brew (StartEngine), Doich Foods (Netcapital), Truleo (StartEngine).

Notable Economic Events Today: NY Empire State Manufacturing Index (8:30 a.m. ET).

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Albemarle Withdraws Liontown Acquisition

Photo by Peyman Shojaei on Unsplash

The chemicals manufacturing company Albemarle (NYSE: ALB) withdrew its binding agreement to buy Liontown Resources (ASX: LTR) on Sunday.

Details: The company said that there were “growing complexities associated with the proposed transaction.”

Quote: “Moving forward with the acquisition, at this time, is not in Albemarle's best interests." - Albemarle CEO Kent Masters.

Background: Albemarle has tried to pursue Liontown Resources, which is based in Australia, for months. At one point, Albemarle increased its bid offer. But Bloomberg reported that a mining tycoon recently bought a sizeable stake in Liontown Resources. That tycoon could have potentially blocked the deal.

Stock Price: Albemarle is down 23% this year, including a 10% decline in the past 30 days.

Final Thoughts: Some chemical stocks are struggling this year, especially in the case of Albemarle, which has seen its revenue fall short of estimates.