Earnings Pessimism

Some interesting earnings stats from Bloomberg:

Europe’s debt crisis is putting pressure on corporate results. Analysts predict members of the S&P 500 will report a 1.1 percent average drop in second-quarter earnings, after estimating a gain as recently as last month, according to data compiled by Bloomberg. That would follow a 6.2 percent average increase in the first quarter.

Earnings pessimism reached levels last seen during the financial crisis. Fifty-nine corporations issued profit projections that trailed analyst estimates during the 20 days through June 22, or 3.1 times the number of those that exceeded them. The ratio has been greater than 3 for eight straight days, the longest stretch in three years. It was at least that high the majority of the time between October 2008 and April 2009, climbing to 11.5 in December 2008, the data show.

Posted by on June 26th, 2012 at 9:19 am


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