Just how much damage is Covid-19 fallout doing to corporate earnings, dividends and balance sheets? We’ll get our best indication yet over the next month or so, as the vast majority of coverage universe companies report calendar Q2 results and update guidance.
The good news is regulated utilities appear to be tracking the expectations management communicated during Q1 earnings calls. Conservative Holding Sempra Energy (NYSE: SRE) in late June actually raised the mid-point of its 2020 earnings guidance from $7.10 to $7.50 per share.
On the other hand, most companies in the communications sector have yet to resume guidance, after pulling it this spring. That means considerable uncertainty when they do report Q2 results. And coupled with share price gains since mid-March, that means heightened risks.
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