Earnings Forecasts: Earnings and Companies

earnings forecasts: The numbers showed that companies in the S&P SPX, -0.58% that reported negative earnings surprises saw a 3.5% fall, on average, over the four-day period, according to Market Watch. That compares with a five-year average of a 2.5% fall over the window, said John Butters, senior earnings analyst at Fact Set, in a Friday note. Fact Set measured share price reaction over a four-day period beginning two days before a company reported results through the two days after. Companies that topped earnings forecasts for the first quarter saw a 0.7% price rise over the four-day window, compared with the 1% gain seen on average over the past five years. He noted that 80% of S&P 500 companies have issued negative guidance for the second quarter, compared with the five-year average of 70%. When it comes to revisions of earnings estimates by industry analysts, the 1% aggregate decline in estimated earnings over the first month of the second quarter was smaller than the 5-year -1.7% 10-year -1.5% and 15-year -1.8% average for the first month of a quarter. Fact Set Caption outside of wrapper for normal article images Given this market reaction, it is interesting to note that companies and analysts have sent mixed signals to date on earnings expectations for the second quarter, Butters said. (news.financializer.com). As reported in the news.