Profit season shows how quickly businesses have improved their digital gaming, says Goldman

"Restaurants have added online ordering and payment services, retailers have turned to digital marketing and e-commerce, telemedicine patient care, homework mandates have fueled collaborative technologies and banks have invested even more in mobile financing capabilities, "analysts led by chief US equity strategist David Kostin wrote in a note on Wednesday.

Consumer businesses have seen strong growth in e-commerce, the note said. Downloads of video chat applications, for example, increased by 1,485% in the quarter, downloads of home fitness applications increased by 288%, downloads of video applications Groceries increased 214% and e-commerce applications increased 116%.

Direct sales to consumers have also increased and many consumer-oriented businesses have moved aggressively to sell directly to end-market customers. The list includes Colgate-Palmolive Co.
CL,
-0.11%

,
Charter Communications Inc.
CHTR,
-1.87%,
Garmin Ltd.
GRMN
-2.73%,
MKC and Corona Brewery Constellation Brands Inc.
STZ,
-4.32%

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Executives have revealed great uncertainty as to the form of a possible resumption of the crisis, although some companies have offered glimpses of optimism, according to the report. This list included American Express Co.
AXP
-6.15%

and Visa Inc.
V,
-1.58%

Amex exceeded profit expectations despite a sharp drop in profits and promised "no layoffs related to COVID-19" while committing to cut costs. Visa reported a "significant" deterioration in spending, but said volumes were much higher at pharmacies, Walmart Inc.
WMT
+ 0.79%

and Target Corp
TGT

"In the midst of permanent home support mandates, business closings and social distancing measures, about 180 companies have achieved profit forecasts," analysts said. "The bottom-up consensus estimate of the S&P 500 EPS 2020 has been revised down 27% from the start of the year."

Most executives warned of new problems in the second quarter, but some, including Archer-Daniels Midland Co.
ADM
-2.93%,
biotech Amgen Inc.
AMGN
+ 0.32%

and the Hilton Worldwide Holdings Inc. hotel group
HLT
-3.19%,
They said they expected the recession to ease over the three-month period. Opinions differed as to whether the recovery would be V-shaped or U-shaped or L-shaped, and companies with higher travel exposure and face-to-face interactions expected companies to put more time to recover.

Read:Marriott CEO bottoming out as occupancy trends show signs of improvement

Construction, commercial supply and data center businesses expect a much faster recovery.

Some companies said they hope to learn from the reopening of business in China, but others were cautious in assuming that the US economy would behave in the same way given its political culture and very different social. The latest list includes the likes of multinational Eaton Corp
AND
-7.39%

and the specialized engineering company Idex Corp.
IEX
-1.47%

"Our basic forecast is that EPS S&P 500 will decline year over year by 33% to $ 110 in 2020, followed by a 55% rebound to $ 170 in 2021", indicates the report.

It's no surprise that the pandemic has resulted in major changes in the workforce and a divide between companies that could easily switch from working from home and those that could not. The former camp includes Air Products & Chemcials Inc.
APD
-0.42%,
Capital One Financial Corp.
COF
-7.26%

Global Payments Inc.
GPN,
-3.37%

and HCA Healthcare Inc.
HCA
-0.27%

"Some companies noted the sustained or improved efficiency of their remote employees and the potential opportunities for some of their employees to continue working remotely over the long term, while others discussed the decline in productivity and operational challenges, "says the Note.

Companies with employees still on site, such as Tyson Foods Inc.
TSN,
-4.04%,
restaurant operator Yum Brands Inc.
Mmm,
-4.66%

and CVS Health Corp.
CVS,
-3.42%

incurred additional costs for measures necessary for the safety of workers of others, such as Walmart and Lowe’s Cos.
LOW,
-1.32%,
paid or continues to pay special bonuses to frontline workers.

But many companies have cut wages, especially for executives, while others have laid off or laid off staff. The April Jobs Report found that more than 20 million people have lost their jobs since the start of the pandemic, which has increased the unemployment rate in the United States. USA at 20%.

Liquidity and the battle to preserve liquidity and reduce expenses have been a major topic in earnings publications. In accordance with the recommendations of the Securities and Exchange Commission, most companies have disclosed their cash positions and many bonds or stocks issued in recent weeks.

Also read:The stock market continues to climb while profits continue to fall, and if the stocks are correct?

Many companies have suspended their share and dividend buyback programs, including Moody’s Corp.
OLS
-1.88%

and Northern Trust Corp.
NTRS,
-3.96%.

But others have said they remain committed to their dividends, including Caterpillar Inc.
CAT,
-1.41%

,
Diamondback Energy Inc.
CANINE,
-6.92%

and Procter & Gamble.
PG,
+ 0.14%