77% of 113 companies that have pre-announced for the second quarter indicate profits will be below expectation. Normally it’s around 70%.

  • With earnings season looming, 77% of companies issuing pre-announcements say their profit picture will be worse than Wall Street is expecting.
  • That’s the second-worst quarter on record going back to 2006, according to FactSet.
  • Two tariff-sensitive sectors, tech and health care, have seen the highest amounts of negative announcements.
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Stocks may have brushed up against record highs Monday. However, a looming threat is just a couple weeks away once profit reports from the second quarter hit.

Analysts have been taking a dimmer view of what is ahead for earnings. They’ve already forecast a decline for the first three quarters of 2019. Now companies are echoing those concerns with a level of pessimism not often seen from corporate America.

Ahead of a season that starts in earnest the week of July 15, 77% of the 113 companies that have issued earnings per share guidance have warned that their numbers will be worse than what Wall Street analysts are estimating, according to FactSet.

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www.cnbc.com/2019/07/01/companies-are-warning-that-earnings-results-are-going-to-be-brutal.html

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