S&P 500: Already More Earnings Revisions Are Down Than Up.

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Earnings revisions moved into negative territory last week, implying that there are more downward revisions than upward revisions, a dynamic that Morgan Stanley analysts say “typically precedes EPS consolidation”. In that sense, they point out that “EPS consolidation in a growth scare environment rather than a recession is typically 3% on average … and spanning an average period of 3 months. Applying this historical precedent to the current environment results in EPS falling from the current USD238 to USD231”.

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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.