Investing.com Poll: Will Q2 Earnings Season Be As Bad As Forecast?
Inside Investing | Jul 16, 2019 09:42AM ET
For our latest social media weekly poll, which ran on both Investing.com’s Facebook and Twitter accounts from July 7 to July 14, we asked our users:
Will Q2 Earnings Season Be As Bad As Forecast?
The U.S. second-quarter earnings season kicks into high gear on Tuesday, with banking giants JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), and Wells Fargo (NYSE:WFC) all set to report results.
Other big names slated to report Tuesday include, Johnson & Johnson (NYSE:JNJ) and Domino’s Pizza (NYSE:DPZ). United Continental Holdings (NASDAQ:UAL) and CSX (NASDAQ:CSX) are then due to report after the bell.
Looking ahead to the rest of the week, Wednesday’s sees Bank of America (NYSE:BAC), Netflix (NASDAQ:NFLX), IBM (NYSE:IBM), and eBay (NASDAQ:EBAY) post their latest financial results.
Microsoft (NASDAQ:MSFT), the world’s most valuable company, is on the docket for Thursday, along with Morgan Stanley (NYSE:MS), UnitedHealth (NYSE:UNH), and Honeywell (NYSE:HON).
Finally, American Express (NYSE:AXP) and Blackstone (NYSE:BX) round up the week when they report on Friday.
The outlook for this earnings season is bleak, however. Analysts expect S&P 500 earnings to have fallen by 3% in the second quarter, according to FactSet data.
If confirmed, it would be the first earnings recession since 2016. It would also represent the largest annualized drop in earnings reported by the index since Q2 2016, when it fell 3.2% FactSet notes.
Breaking Down The Results:
In what can be seen as a surprising outcome, the poll results revealed that the majority of voters expected the second-quarter earnings season to be better than expected.
Overall, when taking votes from both Facebook and Twitter into account, 55% voted that earnings will outperform.
In contrast, 45% said the upcoming earnings season will be as bad as forecast, if not worse.
Out of the 725 votes recorded on Facebook, 422 users, or 58%, said the Q2 earnings season will not be as bad as feared.
On the other hand, 303 users, or about 42%, voted that the earnings season will be as dismal as forecast.
The results we saw on Investing.com’s Twitter account underlined the same view, though it was much closer.
Of the 167 votes recorded, 87 users, or 52%, said earnings season will surprise to the upside.
Meanwhile, 80 users, or 48%, said they expected earnings to come in below expectations.
Behind the Numbers:
Despite low expectations for this earnings season, of the 24 companies that reported by the end of last week, 20 had earnings surprises and 17 reported better-than-forecast revenue.
Growing speculation that the Federal Reserve will cut interest rates at the end of this month for the first time in a decade has contributed to the view that the U.S. central bank will take measures to stimulate economic activity and boost corporate profits.
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