Analysts on average expect the S&P 500's first-quarter earnings
per share to drop 0.3 percent year-on-year, according to I/B/E/S
That's a big drop from the 8.2 percent rise expected as recently
as October and would mark the first contraction in U.S. company
earnings in three years.
Analysts have also made deep cuts to forecasts for the rest of
They still expect growth in the remaining three quarters,
meaning Wall Street would avoid a technical recession typically
defined as a fall in two consecutive quarters. But only just, as
the lowered growth forecasts are meager.
For a graphic on U.S. earnings estimates over time: https://tmsnrt.rs/2TRqqof
The swift pace and size of the cuts have kindled concerns that
the downward trend will continue, particularly as companies
struggle with squeezed margins and large amounts of debt.
The full-year estimate stands at just 4.2 percent now, down more
than half from 10.2 percent in October.
It's pretty gloomy on the other side of the Atlantic too.
Analysts anticipate barely any growth among European companies
listed on the STOXX 600 at the slowest in 18 months, data shows.
For a graphic on European earnings estimates over time: https://tmsnrt.rs/2EaTT7f
(Reporting by Josephine Mason and Helen Reid; editing by John
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