US corporate earnings trend stokes concern about 2019 outlook
S&P 500 companies are now barely expected to eke out an increase in profits for the first quarter
New York — US companies are beating analysts’ expectations this earnings season but to a smaller degree than normal, and S&P 500 companies are now barely expected to eke out an increase in profits for the first quarter of 2019. The trend underscores fears about a potential decline in earnings this year, even as stocks just closed their best January in more than three decades, as the benchmark S&P 500 index rebounded from a swoon late last year. “It does get tricky here as this quarter plays out if companies continue to see weakness. Then there’s going to be an issue, and investors will become very concerned,” said Michael O'Rourke, chief market strategist at Jones Trading in Greenwich, Connecticut. Fourth-quarter earnings are estimated to be up 15.5% from a year ago, based on results from nearly half of the S&P 500 companies and forecasts for the rest, according to IBES data from Refinitiv, compared with about 14.5% three weeks ago. That growth clip is historically strong but disapp...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.