Tags: FactSet | earnings | S&P500 | quarter

FactSet: Analysts Forecast 0.4 Percent Earnings Decline for Q1

By    |   Tuesday, 01 April 2014 09:24 AM

Analysts are doing their usual dance with earnings estimates.

The consensus estimate now calls for a decline of 0.4 percent in profits for companies in the Standard & Poor's 500 Index during the first quarter, according to FactSet.

If that forecast is accurate, it would represent the first year-over-year dip in earnings since the third quarter of 2012, when they fell 1 percent.

Editor's Note:
New Warning — Stocks on Verge of Major Collapse


At the beginning of the year, analysts predicted earnings growth of 4.4 percent for the first quarter.

Before you get too worked up by the latest forecast, realize that during the last five years, earnings forecasts have declined 4.2 percent during the average quarter and that analysts' final projections usually underestimate actual results.

"Usually we finish somewhere between where estimates are at the start of the quarter and where they are at the end," FactSet senior earnings analyst John Butters tells CNBC

"So the odds are that enough companies will beat their estimates that we get back to positive."

Indeed, at this time last year, analyst anticipated an earnings decrease for the first quarter on 2013, and they rose 3.8 percent, CNBC reports.

The latest forecast may have been precipitated by companies' earnings warnings. "For Q1 2014, 93 companies have issued negative EPS [earnings-per-share] guidance, while 18 companies have issued positive EPS guidance," FactSet writes on its website.

"If 93 is the final number . . . for the quarter, it will mark the second highest number of companies issuing negative EPS guidance since FactSet began tracking guidance data in 2006."

Editor's Note: New Warning — Stocks on Verge of Major Collapse

© 2021 Newsmax Finance. All rights reserved.


InvestingAnalysis
Analysts are doing their usual dance with earnings estimates.
FactSet,earnings,S&P500,quarter
276
2014-24-01
Tuesday, 01 April 2014 09:24 AM
Newsmax Media, Inc.
 
Newsmax TV Live
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved