The company’s prospects so far paint a bleak picture of earnings for 2023
Forecasts for early 2023 corporate earnings, which companies are releasing along with actual fourth-quarter results, are deteriorating, Bank of America equity and quantitative strategist Savita Subramanian wrote in a report Sunday. As a result, the S&P 500’s 2023 earnings estimates are already down 1% — but 10% below the June 2022 peak.”[F]The forward-looking readings are less positive,” the company’s report said. “Early signs are worrisome,” with an internal “S&P guidance ratio” falling into the 10th percentile, suggesting “corporate misery reigns.” [is] rising.” For the current season, just 11 companies have issued guidance, but seven of them have come to light, while just two beat consensus, the company noted The S&P 500 — which accounts for 14% of the entire S&P 500 Earnings Matter – Earnings released are 1% below analysts’ estimates when they typically beat them by half a percentage point, Subramanian said Subramanian said analysts’ estimates are already down 7%, Subramanian said, while Lori Calvasina, Head of US equity strategy at RBC Capital Markets, who studies management’s minutes from quarterly interviews with analysts and investors. Noting the same troubling early earnings trend, she captioned a report released Monday: “EPS background continues to diverge.” effect to provide guidance,” wrote Calvasina. For example, its 55-page report highlighted a call from Procter & Gamble management last week that expressed a “high level of uncertainty about the impact on guidance,” as RBC put it. “It’s just not an easy time to lead yourself to the forefront of opportunity,” Procter & Gamble CEO Jon Moeller said in a Jan. 19 call with analysts, according to a transcript of FactSet.
https://www.cnbc.com/2023/01/23/company-outlooks-so-far-paint-a-dreary-2023-earnings-picture.html The company’s prospects so far paint a bleak picture of earnings for 2023
