Look Out Ahead, Earnings May Be Grim, Or None

Posted by: : Paul EbelingPosted on: March 26, 2015 Look Out Ahead, Earnings May Be Grim, Or None
 

Look Out Ahead, Earnings May Be Grim, Or None

$MAT, $AMZN, $MRO, $APC, $FSLR, $GILD, $BAC

Participants should look out for slim corporate profits when Q-4 results start coming in, some companies’ profits expected to grim to none.

At least 19 companies in the S&P 500 are expected to see their profits dive by 90% or more, according to forecasts.

Analysts’ consensus projects that overall S&P 500 earnings will decline by almost 3% for Q-1 Y 2015. All 10 recessions since Y 1945 were preceded by downward trending growth in EPS during the prior 12-month frame.

A major corporate profits dive is ominous, as profit growth has been a Key driver of this Bull market now 6 yrs running.

Energy stocks are “expected to be a field of pain” in Q-1, according to one analyst.

But, be alert, some of these companies could surprise to the Northside.

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There is no panic yet.

The S&P 500 companies expected to swing to actual losses for Q-1  from profits during the year-ago period include: Mattel (NASDAQ:MAT), Amazon (NASDAQ:AMZN), Marathon Oil (NYSE:MRO), Anadarko Petroleum (NYSE:APC), and First Solar (NASDAQ:FSLR), according to data from Capital IQ

Earnings estimate revisions indicate the Q-1 reporting cycle could be very weak.

The number of negative revisions for Q-1 Y 2015 is the highest of any other recent Quarter, the data shows.

In December, total earnings for stocks were forecast to be up 5%, but are now expected to be down 5.2% from the same frame in Y 2014. Estimates for all 10 stock sectors tracked by HeffX-LTN are coming in lower.

The healthcare, and finance stocks are the only major sectors with strong positive earnings growth projections, with healthcare share earnings expected to be up 11.9%, and financial share earnings projected to be up 9.5%.

The leadership is thin in those sectors, with Gilead Sciences (NASDAQ:GILD)responsible for a big portion of healthcare sector earnings projection growth and Bank of America (NYSE:BAC) responsible for much of the financial sector earnings growth projections.

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

Trade FX, Equities and Options with the World's Leading Platform Open an account here , call us at 305 4904 116, or email us to get started.

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