Earnings revisions recover but seasonality points to further falls

mercados broker

Morgan Stanley: Last week, analysts noted that the S&P 500 earnings revision breadth had fallen below 0% for the first time in several months. Now, this breadth has reversed back to positive again.

What is interesting is that earnings revisions breadth follows a pattern very much in line with historical seasonality, which would point to further declines in October. This observation is repeated globally so earnings revisions for 2024 could all be negative except for Japan.

image 4

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.