Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Research in Motion (RIMM) is its own story but Nike (NKE) and Ford (F) obviously are global multinationals who represent in many ways the macro environment. I’ve said this quarter is going to be a doozy (more for future guidance but it appears even the current quarter has too much hopium in it) as analysts have built in some expectations that don’t seem to align with the reality out there and this continues the pattern we’ve seen the past few weeks with a handful of high profile warnings. July’s earnings season is going to be very tricky.
Ford CFO says international losses would triple in Q2, primarily because of much weaker European sales, and it could close an assembly plant in Europe should demand keep falling.
Nike misses estimates on a per share basis by nearly 6%, despite a 12% Y/Y jump in total revenue. The company attributes the miss to lower gross margins, higher SG&A spending, an increase in its effective tax rate and a charge related to restructuring Nike Brand Western Europe’s operations.
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