Making Sense of Earnings

Stephanie Dahle

Another reason for improving earnings is the boost in companies’ inventories and impact of the government stimulus package, said Ron Roge, chairman of R. W. Roge & Co. Going forward, companies will not have the ability to reduce costs as dramatically as they have been, and the inventory replenishment boost will have been completed. Therefore, for earnings to increase, we need to look for the economy (GDP) to improve.”

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