Savita Subramanian, an equity and quantitative strategist at Bank of America, said in a report on Sunday that corporate earnings prospects for early 2023, which companies have announced along with actual fourth-quarter results, are worsening. writing. As a result, his forecast for the S&P 500 in 2023 is already down 1%, but from its peak in June 2022, it’s down 10%. “[F]The company’s report said “early signs are troubling” and the internal “S&P Guidance Ratio” has fallen into the 10th percentile, indicating “corporate misery.” [is] Only 11 companies have issued forward guidance this season, seven of which have come to light, and only two have exceeded consensus, the company notes. His S&P 500, which accounts for his 14% of total S&P 500 earnings, is earning 1% below analyst expectations, while he typically beats it by 0.5 percentage points. he says Subramanian. So far, it has missed expectations by 6%, Subramanian said, and to make matters worse, analyst estimates were already down 7% in the reporting period. In a quarterly conference call with analysts and investors, she headlined the report released Monday, noting the same disconcerting early earnings trend, saying, “EPS backdrop continues to soften.” Avoid heightened uncertainties in the outlook that affect our ability to provide guidance,” Calvasina wrote. He emphasized last week’s call by Procter & Gamble’s management, which expressed “certainty.” Procter & Gamble (P&G) Chief Executive John Mueller said in a conference call with analysts on Jan. 19, “Guidance for the best possible future,” FactSet records. It’s not an easy time to pick up,” he said.
