Shrinking profits: Strategists are again starting to reduce 2023 earnings estimates

  • 📰 CNBC
  • ⏱ Reading Time:
  • 21 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The problem is, even flattish earnings expectations may be too rosy. That story relies on profits stabilizing in the second half, and that may be wrong.

Call it the "incredible shrinking earnings story." Strategists are again starting to reduce earnings estimates. Analysts began cutting 2023 earnings estimates aggressively in the third quarter of last year. However, in February the rate of decline has slowed, but it now appears to be re-accelerating. Earnings: shrinking fast June 2022: $252 Dec. 1: $231 Jan.

"Multiples should flatline as persistently high inflation, tighter monetary policy and sub-par economic growth offset declining recession risk," Golub said in a note to clients. With 2022 earnings of roughly $220 already in the bag, a large part of Wall Street now expects earnings to be flattish to slightly negative for 2023. The problem is, even flattish earnings expectations may be too rosy.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

less workers less products less profit. It’s time to booblr burst

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The March stock market outlook as the S&P 500 loses momentum after strong 2023 startThe stock market needs a dose of caffeine and vitamins.
Source: CNBC - 🏆 12. / 72 Read more »

Utah's job market remains strong to start 2023, employees add new skills to resumesUtah’s job market continues to remain strong and the demand for labor is growing in the state. The jobs report for January 2023 revealed the state added more than 46,000 jobs over the last 12 months. JFRANCHIREPORTS
Source: fox13 - 🏆 550. / 51 Read more »