MarketBeat (WSJ Blog) – Earnings Preview: Companies Getting More Pessimistic
With another earnings season on the horizon and Europe’s economy struggling mightily, investors are getting that queasy feeling once again. Companies have been slashing forecasts sharply the last few weeks, with Europe’s continued turmoil often being cited as one of the main culprits for the tough times. Analysts have also been slashing estimates as they prepare for a rocky quarter… In the S&P 500, there have been 94 companies that have issued negative earnings preannouncements for the second quarter, compared to only 26 positive forecasts, according to Thomson Reuters. Dividing the two metrics yields a 3.6 ratio, which Thomson says is the weakest showing since the third quarter of 2001.
Source: Bianco Research