Investment Director Says Second Quarter Results To Be ‘Noisy’

This week, quarterly earnings roll out for U.S. firms, including several Arkansas-based stocks.

Chris Harkins, Senior Vice-president and Managing Director with Little Rock-based Delta Trust Investments, says he expects the quarterly results to be “noisy.”

“We had a really great four or five quarters in a row,” Harkins said. “I think they’re going to be a little noisier this quarter. Many companies are already front-running earnings, kind of down-playing and settling down analysts’ expectations.”

Harkins said he expects pretty good results from many companies, but a lot of that profitability is coming from squeezing expenses not necessarily from revenue growth.

“What’s been going on essentially is we’re seeing bottom-line growth. With unemployment as high as it is right now, productivity is off the charts. A lot of the growth has come from squeezing margins and the efficiency of what they’re earning. What we’re not seeing are sales results,” Harkins said.

He also touches on issues impacting the financial markets in the last few weeks and going forward, as well as a new regulation that will impact 401(k) participants with any investment firm.

You can watch his full interview below.