What are profit warnings?

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Is the so-called profit warning primarily a profit warning? about a company listed on the stock markets. It is usually a downward revision de previsiones de ventas y beneficios, pero además puede ser al revés. Dicho de otra forma, con previsiones al alza en sus líneas de negocio, aún cuando esto no es lo frecuente, es este tipo de alerta bursátil. Adquieren un papel especial en el momento en que pueden servir para que los pequeños y medianos inversores puedan realizar sus operaciones en el mercado de valores. Ya be abriendo o deshaciendo posiciones, según cada caso.

On the other hand, profit warnings are eagerly awaited by all types of financial agents to be available to make their own decisions en lo que a inversión se refiere. Debido a que en efecto, este tipo de advertencia en el mundo bursátil sirve para que los intermediarios financieros reajusten el precio target de las acciones, ya sea al alza oa la baja, según cada caso. Sea cual sea el caso, tiene un impacto muy importante en su valoración. En la medida en que puedan establecer su evolución en los mercados financieros, en un sentido u otro.

On the other hand, there is no doubt that earnings warnings are highly feared by many investors because they can affect the stock drop. O peor todavía, como un cambio de tendencia violento. Exactamente por ello, tienes que tener mucho cuidado a la hora de publicar este tipo de advertencias dado que puede generar unas u otras sorpresas que pueden afectar tu briefcase. Más allá de otras consideraciones técnicas y hasta que puedas desde el punto de vista fundamental. No olvides que su importancia trasciende de lo que se dice en la advertencia de ganancias.

Earnings warning: poor prospects

Whatever the case, there is one thing for sure and that is that the earnings warnings that are being given this year are not for nothing favorable they stop the interests of companies that are listed on the stock markets. Both with regard to the markets of the old continent and the American. To this end, it must not be forgotten that the downward revisions of estimates in the United States are at the lowest level since 2016. This may be giving a signal of possible falls in the markets on the other side of the Atlantic, but that also it will affect Europeans.

The decrease in financial forecasts that are taking place, with greater intensity than expected, are putting in doubt the recovery of the stock market in the last part of the year and also for the next year. They fall with margins that go 3% and up to 10%, which is not a good sign to trade in the stock market. It can be a warning about what can happen to your investments from now on. With the sole exception of the companies listed in CAC 40, which have the best stops that have emerged from these specific reviews.

Reviews in quotes

In these cases, the companies that have been notified with a discount in the financial forecasts have visualized how their prices have gone dripping down little by little. Not surprisingly, your target price has dropped and, in some cases, heavily depreciated. To that end, earnings warnings are a confirmation that something is right with their companies or at least have some issues to boost their quarterly results. This is something to analyze when reviewing your investment portfolio in case it is necessary to vary it at any time to defend your interests as a small and medium investor.

On the other hand, it is very interesting to know that many of the fluctuations in the prices of listed companies are derived from these warnings. To the point that there is big differences in no time after these earnings warnings were released. In a few hours an intense current of purchase or sale is generated, according to each case and situation. To this end, there is no going back in the decisions of investors who faithfully follow these advice sent by financial agents.

Recent examples with earnings warning

As an example, nothing better than what has happened very recently with the company. Cie Automotive. Well, it has been enough that a warning of these characteristics has been announced for its shares to have depreciated with a strong intensity in the movements of the financial markets. Because in effect, the lower earnings warnings that have been made public throughout this year in this company, has caused it to close its titles with a strong blow, happening in a few hours, falling almost 7% to 23, 16 euros. Being, whatever the case, one of the most punished values within the Ibex 35.

Del mismo modo que Cie Automotive, esto ha sucedido con otras compañías que cotizan en bolsa, algunas de ellas con especial importancia dentro de sus índices bursátiles. Esto demuestra la gran relevance que ha adquirido la difusión de estos avisos sobre la situación de las compañías en los últimos años. Como resultado de estas acciones, las administradoras de fondos de inversión reducen sus activos en las compañías afectadas para que la current sale it is clearly imposed on the selling pressure. This is extremely easy for all investor profiles to understand. Beyond other technical considerations and perhaps also from a fundamental point of view.

Market reactions

In all cases, the equity markets solution it is almost always very negative, without any nuances. Not surprisingly, the situation causes sharp falls in the trading price of the company's securities. Even though it may be the case that this situation can be discounted from its price for any situation. In addition, there may be certain divergences in prices because investors expected a larger (or smaller) cut in their estimates. The latter is common in the stock markets, since these warnings can be filtered or even disclosed by other financial intermediaries.

The fact is that there are companies that can present several notices of benefits in the same fiscal year and this very special scenario can cheat more than one investor to make your decisions about what to do with your money. Because it is a movement that is usually followed by a good part of the agents that operate in the financial markets. Not only investors, but also brokers and other types of intermediaries in the stock market. To the point that actions can take a different course each time.

Company obligations

On the other hand, it must not be forgotten that a large part of the listed companies that make their earnings forecasts public are obliged to make them public to investors if these future forecasts do not do so. they will be achievable in the next years. This happens, either due to a desire for excessive optimism or, on the contrary, due to an obvious change in company expectations.

Sea cual sea el caso, este es un aspecto muy poco conocido de las advertencias de beneficios y que se tiene en cuenta a la hora de tomar posiciones en esos momentos. Por ello, puede ser una strategy que puedas usar a partir de ahora y siempre y cuando se genere un aviso de estas características en compañías que cotizan en los mercados de renta variable. No lo olvides debido a que te puede ayudar channel your investments with greater guarantees of success than before.

Benefit reductions

Whatever the case, it is a definition that generates certain ambiguities among small and medium investors and therefore it is convenient to explain some doubts about its real meaning. Well, to solve them you need to know that, in practice, these public warnings are always related to reductions in anticipated benefits, not unexpected increases. It is a nuance that you should pay attention to every time you come across an analysis of listed companies that have gone through this very special procedure.

By no means should you underestimate it because after all setting the real stock price. It is worth more inclusive than the fundamental data on them, even when starting from another significantly different strategy so that you can access or undo positions in the financial markets.

No en vano, esta es una realidad que deberás de afrontar en el mundo de las inversiones y que te puede beneficiar en el desarrollo de las operaciones bursátiles. Tal vez más que otros parámetros que usa con gran frecuencia en inversiones durante los últimos años. Al menos este post te habrá ayudado para que a partir de ahora conozcas algo más sobre lo que verdaderamente es la advertencia de ganancias. Seguro que será así, ¿verdad?