Analysts Are Taking a Knife to Their 2020 Profit Estimates
- Analysts just cut S&P 500 estimates by the most since January
- Expected gain of 10% too high as DataTrek sees zero growth
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High on the list of things bulls dread this earnings season is that it become the scene of a big downward cut in next year’s estimates. It happened last year, helping foment the worst fourth quarter of the bull market. And though it’s very early, it’s happening now.
Despite a week of decent results, analysts last week chopped estimates for combined S&P 500 earnings in 2020 by almost $1, to $178.40 a share. Down 0.5%, the decline was the biggest for any week since January, data compiled by Bloomberg Intelligence showed.