Reopening demand and marooned containers have caused bottlenecks across supply chains just as the holiday shopping season kicks off in North America. It’s also prompting downgrades across analysts estimates for the upcoming earnings season.
Many items destined for retailer shelves this holiday season are hopelessly snarled in the global supply chain. What does that mean for shoppers?Here are some challenges and opportunities identified by investors for key sectors ahead of the earnings season:For the semiconductor industry, expectations are for more capacity to only trickle in by the latter part of 2022 because of factory closures and longer delivery times.
“Even though many of them have had revenues surge to all-time records, the stocks have not followed suit,” Susquehanna analyst Christopher Rolland said. “That tells me that at this point some of this consternation is baked into shares more broadly.”Chip shortages are also behind the estimated $210 billion in lost sales for carmakers this year. Many have reported ain revenues in the third quarter, worsened by shipping logjams and port congestion.
Tesla Inc. and Toyota Motor Corp. appear to be handling the shortages better than others, with the Japanese carmaker reporting a 1.4% increase in sales in the latest quarter. “That said, the most-exposed stocks are down 20% on average since mid-August, so we think investors have digested most of these issues,” Nikic wrote in a note last week.What’s making matters worse for margins is a supply crunch within the commodity sector, driving raw material costs even higher for businesses already dealing with logistics issues.
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