TKer by Sam Ro

Share this post
Are earnings expectations falling apart? No. 🤔
www.tker.co

Are earnings expectations falling apart? No. 🤔

"The facts do not bear this out" 📉

Sam Ro, CFA
Jun 8, 2022
10
4
Share this post
Are earnings expectations falling apart? No. 🤔
www.tker.co
Negative revisions are not unusual. (Source: Getty)

Microsoft and Target are among prominent companies that have made headlines recently by announcing they are cutting estimates for future earnings. And these anecdotes aren’t totally isolated.

Some prominent Wall Street bears have noted for months that S&P 500 company earnings revisions have appeared to become increasingly negative.

These headlines are understandably alarming, especially since, as TKer readers know from our headlines, earnings are the most important long-term driver of stock prices.1

However, there’s much more to this story.

“There’s a popular narrative that earnings estimates are beginning to fall apart,” Jonathan Golub, chief U.S. equity strategist at Credit Suisse, wrote on Wednesday. “The facts do not bear this out.“

Keep reading with a 7-day free trial

Subscribe to TKer by Sam Ro to keep reading this post and get 7 days of free access to the full post archives.

Already a paid subscriber? Sign in
Previous
Next
© 2023 Samuel Ro
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing