Still, Wall Street equity analysts continue to predict the company’s bottom line and revenue growth, as far as it can be seen.Wall Street Consensus Based on IBES Data from RefinitivThe United States of America is to achieve high profits and profits quarterly until the first three months of 2024. This is the farthest date on Wall Street radar.
Take these rosy quotes too seriously.
“We’re clearly on the downside of the profit cycle, but Wall Street estimates don’t yet tell us,” said Richard Bernstein, a former chief investment strategist at old Merrill Lynch, who now runs his own company. Said. , Richard Bernstein Advisor.. “Ultimately, you will.
“Wall Street analysts are neither the beginning nor the end of anything,” he continued. “They are always in the middle. When many companies don’t live up to their expectations and start to have a” negative surprise “in corporate profits, analysts will initially say it’s anomalous. Then he said they would all at once revise their predictions significantly.
Bernstein expects further downward revisions in the near future. And in the future, when earnings begin to improve again, Wall Street will be slow to recognize it, he says. “No one wants to say that first,” he said.
Big picture
Reports published over the next few weeks will look back on the past. They describe the company’s performance in the second quarter and, with indicators such as the unemployment rate, still reflect a surprisingly strong economy.
The Wall Street consensus on July 8 was that most companies were successful in squeezing significant profits with solid earnings. According to Refinitiv, the average estimate for S & P 500 companies is:
However, a closer look reveals that energy companies were expected to provide most of these revenues.Soaring oil and gas prices have hit consumers and most businesses, but you’re Halliburton’s CEO or Exxon mobileI will report the earnings next Friday.
