Grim Earnings Forecasts Are Getting Worse by the Week
- More than 80% of companies have cut their earnings outlook
- Analysts downgraded the most stocks in June since 2017
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On Wall Street, it’s not exactly a news bulletin when companies cut profit forecasts two weeks before earnings season. It makes it easier to clear a lowered bar, when results are released. Right now, though, something more worrisome may be at work.
More than 80% of S&P 500 companies that have revised their profit estimates one way or the other in the lead-up to reporting have slashed them, data compiled by Bloomberg show. Analysts are in on the action too, reducing company projections at the fastest pace in near three years.