Are Earnings Expectations Too Optimistic?

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Are Earnings Expectations Too Optimistic?

The earnings season for the past quarter is set to kick off over the next few weeks. The market is optimistically pricing in growth of around 14%. The reality, however, is likely to be different. Our graph shows the market implied expected growth rates for earnings, alongside the historical average of earnings growth when our proprietary US Growth Nowcaster is in the region of 0, -0.15, -0.3 and -1. Will markets be brought back to reality?


20190403 COTD - Earnings Season - Website
Unigestion, based on Bloomberg data as at 3 April 2019.




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