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Morning Notes — Earnings Growth

Earnings Growth

February 27, 2020

MSFT became the latest US large cap name to lower the bar based on supply chain disruptions, while Nestle’s decision to restrict overseas business travel with US companies undoubtedly considering similar measures. Companies providing guidance continue to stress the difficulty in quantifying the coronavirus impact, while one sell-side firm decided to ‘get in front’ of others by cutting their 2020 S&P EPS growth estimate to zero (~$165) vs consensus for +7% (~$175). An expected earnings rebound this year is one of the key factors of the bullish narrative that supported multiple expansion.

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