Several features of the S&P500 first quarter earnings results have worrying market implications
John Robertson
PortfolioDirect
Several features of the S&P500 first quarter earnings results have worrying market implications. Both sales per share and earnings fell 3% in the quarter for reporting companies. The gain over the year was only 6%. Once again, nearly 70% of reporting companies beat estimates but earnings forecasts have been cut back 10-12% in each of the last three quarters before the reported results beat expectations. Current earnings estimates now point to a 16% gain over the coming year. That would be strong enough to validate further market gains but another round of similarly sized downgrades would give the market another single digit result for the year making it tougher to sustain existing valuations.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
Comments
Comments
Sign In or Join Free to comment