Newscasts - Lack of forward guidance from companies 'problematic' for market

Skechers USA

29/04/2025 21:45

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_wocynlfd&referenceId=tag:reuters.com,2025:newsml_RW029929042025RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: George Cipolloni, PMEFX portfolio manager at Penn Mutual Asset Management, said investors are "going to have to wrestle with" companies such as GM, UPS and others pulling their outlooks amid uncertainty over U.S. President Donald Trump's trade war.

Short Link: https://refini.tv/4ddED8R

Video Transcript:

So, I think in general regarding earnings, earnings growth has actually been pretty good for this quarter. It's up about 10%, which would be the second straight double-digit quarter in terms of earnings growth. I just think that outside of that, given all that's happened from a top-down perspective, this quarter's numbers really aren't as important as the commissary looking forward. We have had companies like GM, UPS, Skechers even, just not being able to give guidance. Obviously, the tariff thing is a huge deal. It's historic. It's not something any of us have dealt with in our lifetimes and management teams, just like investors, just like consumers, are having a hard time grappling with this uncertainty and these potential price increases. So, if you think about it as a management team, you know your prices are going to increase. What do you do with that? If you eat it, then your margins are going to go down and your profitability will go down. If you pass it along, then inflation is going to go up and it's going to hurt consumers. And I think that's one of the reasons why with the consumer confidence report today, we saw inflation expectations still very, very much higher than expected.