TheStreet's Chris Versace discusses the various headwinds weighing on third quarter earnings while issuing caution ahead of next quarter: "So I do think there's a little more concern and we are seeing some expectations come down for the fourth quarter" says Versace.
Full Video Transcript Below:
KATHERINE ROSS: Third quarter earnings season is shaping up to be a rough one amid fears of a potential recession, as we extensively discussed already. Do you expect to see a similar story play out in the fourth quarter?
CHRIS VERSACE: So, you know, the guidance that we've been getting has been mixed, you know, in the beginning of the earnings season, you know, expectations were good, better than feared. Last week was a little different. But we're starting to see more companies really kind of guide down. We're also hearing companies talk about the inflationary pressures that they thought were going to peak in the third quarter, now maybe peaking in the fourth quarter. So I do think there's a little more concern and we are seeing some expectations come down for the fourth quarter.
But again, you know, it's a very important one for retail land, right, because most retail companies make the vast majority of their profits in the holiday shopping season. So, you know, I think once we start to hear from the first batch of retailers, we're going to have a much better sense as to how low the earnings expectations for the current quarter are going to go.