By: Tom Aspray
Just over a month ago, the outlook for the earnings season was not very good, but for those who have followed the market through the current bull market, this is not surprising. It seems that those who try to project earnings often take a too-cautious outlook.
In June, analysts at FactSet estimated the decline in earnings for Quarter 3 would be 0.6%, but by October 4, the estimated earnings decline for Q3 was -4.1%. This shows an increase in economic anxiety over the past few months and an unclear reading on the health of the economy. Before the start of earnings season, Bloomberg Opinion analysts commented that “Recession Fears Are Seeping Into the Stock Market”.Thenjust before the start of the earnings season, the Financial Times wondered “Just how grim will the US earnings season be?”.