Poll: Will Second-Quarter Earnings Exceed or Fail to Meet Expectations?
Earlier this week, we asked readers whether second-quarter earnings will exceed or fail to meet expectations across the globe. CFA Institute Financial NewsBrief asked readers whether second-quarter earnings exceed or fail to meet expectations across the globe.
Earnings for the quarter that ended June 30 will:
The second-quarter-earnings season is well under way across the globe, and we asked readers earlier this week whether results will meet, exceed, or fail to meet expectations. Only 17% of respondents think earnings will be less than consensus expectations, whereas 44% think that earnings will exceed expectations. Whether this is a bullish sign or just an acknowledgment by readers that most firms are ace managers of their earnings is hard to tell.
In a similar poll last October, we asked readers whether profit margins in the US were likely to expand, contract, or stay the same in the next 12 months: 38% expected margins to contract and 20% expected expansion. Given the disconnect between these two polls and allowing for the passage of time, it seems that readers might be inclined to believe earnings management is a common practice. Regardless, equity markets have historically risen relative to earnings outperformance.
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Very interesting poll. Thank you. The real poll of course is in the market where we vote with our wallet. And so it would be interesting to compare the bullish poll results with the bullish market.
Hello Jamal,
Yes, you are correct and thank you for pointing it out.
Cheers!
Jason