Nothing in the earnings numbers suggest the market is undervalued. That assessment is made only with a guess about the future, usually involving a return to the pre-virus era.... Read More
With 86% of Q1 2020 earnings now reported, earnings are expected to decline 16% compared to a year ago. Q2 2020 is expected to be one of the worst quarters ever, down 42% with estimates still falling. The S&P 500 forward P/E ratio continues to extend higher from a 19-year extreme.... Read More
Q1 2020 earnings are stabilizing, but quarterly forecasts through Q1 2021 continue to fall. The S&P 500 forward P/E ratio continues to extend higher from a 19-year extreme. The Q2 2020 revenue forecast of -10.85% is in line with the consensus Q2 2020 GDP forecast of a -30% annualized decline.... Read More
Q1 2020 was expected to be bad, but the early results are far worse. If this were a normal quarter, the stock market would not take this news well. But because nothing is normal about this quarter, analysts are looking past this data. The problem is 2021 estimates are not great and forward P/E ratios are overvalued.... Read More
Earnings season is about 10% complete and estimates continue to fall dramatically. Market valuations have swung wildly in the past few weeks.... Read More
Earnings season starts next week. Analysts downgraded their estimates again last week, but they still think this is "just another bad quarter" and expect earnings to rebound and show a profit by year-end.... Read More
As the full extent of the coronavirus damage becomes better understood, economic forecasts are coming down hard. Equity analysts have been the slowest to react, still forecasting a good year for earnings.... Read More
Q4 2019 earnings season is more than 88% complete and growth estimates are 1.25% higher versus last year, continuing the trend of low growth the past few quarters. Perhaps more concerning, 2020 forecasts appear to be getting hit on global supply chain fears from China?s coronavirus.... Read More
Q4 2019 earnings season is more than 78% complete and growth estimates are roughly 1.2% higher versus last year, continuing the trend of low growth the past few quarters. Perhaps more concerning, 2020 forecasts appear to be getting hit on global supply chain fears from China?s coronavirus.... Read More
Q4 2019 earnings season is more than 60% complete and growth estimates remain roughly 1% higher versus last year, continuing the trend of low growth the past few quarters. Perhaps more concerning, 2020 forecasts appear to be getting hit on global supply chain fears from China's coronavirus.... Read More
Q4 2019 earnings season is approaching the halfway point and growth appears to be on track for a 1% increase. This is not good. Wall Street expects Q4 2020 growth to rebound to +13% to support the big rally in stocks over the last several months.... Read More
Roughly one-third of S&P 500 companies will report Q4 2019 earnings this week. Will the reports show indications that earnings will rebound by Q4 2020?... Read More
Q4 2019 earnings reports pick up steam this week. This comes amid slow earnings and revenue growth after great stock returns in 2019. Earnings results need to show signs that the stock market correctly discounted better results in the coming quarters.... Read More
In 2019 the S&P 500 was up 31% on the hope that future earnings would justify the now lofty valuations. Companies will begin reporting Q4 2019 earnings this week. While quarterly results do not need to reflect all the earnings increases hoped for, they do need to show signs that better results are coming.... Read More
Q3 2019 earnings season is over 95% complete and it's now assured to be a negative growth quarter. Q4 is also forecasting negative growth, setting up the potential for an earnings recession.... Read More
As another earnings season comes to a close, companies have once again successfully guided analysts' expectations low enough to ensure positive results. This is a game that has been perfected over the past decade.... Read More
Q3 2019 earnings season is over 92% complete and it?s looking like it will be a negative growth quarter. Q4 is now forecasting negative growth, setting up the potential for an earnings recession.... Read More
Q3 2019 earnings season is over 89% complete and it?s looking like it will be a negative growth quarter. Q4 is also close to forecasting negative growth, setting up the potential for an earnings recession.... Read More
Q3 2019 earnings season is over 70% complete and it's looking like it will be a negative growth quarter. Q4 is also close to forecasting negative growth, setting up the potential for an earnings recession.... Read More
Q3 2019 earnings season is now underway. Through Friday, 200 S&P 500 companies have reported results (40%). Analysts project S&P 500 earnings declined by 2.83% from a year ago. FactSet notes companies with larger foreign revenue exposure are reporting earnings growth of -9.1%, while companies with larger U.S. revenue exposure are reporting earnings growth of -0.8%.... Read More