Question
Analysts cut earnings estimates by a larger margin than average in the first quarter as a bank liquidity crisis added to concern about a looming
Analysts cut earnings estimates by a larger margin than average in the first quarter as a bank liquidity crisis added to concern about a looming recession. Analysts lowered Q1 earnings per share (EPS) estimates for S&P 500 companies by 6.3%, a larger decrease than the 5-, 10-, 15-, and 20-year averages. Concern about bank liquidity following the collapse of Signature Bank and SVB, as well as fears of a pending recession, may drive down estimates. The bottom-up Q1 EPS estimate-an aggregation of median forecasts for each company in the S&P 500 Index-dropped 6.3%, to $50.75. Analysts have lowered quarterly earnings estimates by an average of 2.8% over the last five years and 3.8% over the past 20 years. Predictive analytics can forecast potential areas of risk by identifying trends and patterns in your data and make predictions on how these risks can affect your business. You can use past information to project future outcomes for your business. Analytics help you identify future opportunities, serve customers better and make more informed business decisions over time.
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