{"id":24743,"date":"2023-04-26T18:43:58","date_gmt":"2023-04-26T18:43:58","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/refinitiv-data-shows-smaller\/"},"modified":"2023-04-26T18:48:58","modified_gmt":"2023-04-26T18:48:58","slug":"refinitiv-data-shows-smaller","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/refinitiv-data-shows-smaller\/","title":{"rendered":"Refinitiv data shows smaller decline in U.S. earnings view"},"content":{"rendered":"<p>By Caroline Valetkevitch<\/p>\n<p>NEW YORK (Reuters) &#8211;     The estimated decline in first-quarter S&amp;P 500 earnings is getting smaller as more companies report results, Refinitiv data showed Wednesday, with a host of big names including Microsoft Corp reporting upbeat numbers this week.<\/p>\n<p>Analysts now expect first-quarter earnings to have fallen 3.2% year-over-year for S&amp;P 500 companies. That&#8217;s an improvement from Friday&#8217;s estimate, which was for a decline of 4.7%. Analysts had forecast a 5.1% decline in earnings for the quarter at the start of April.<\/p>\n<p>The latest forecast is based on results from 163 of the S&amp;P 500 companies as of Wednesday morning and estimates for the remaining components.<\/p>\n<p>Shares of Microsoft were up 8% in afternoon trading Wednesday and the biggest positive for the S&amp;P 500. Late Tuesday, Microsoft reported quarterly revenue and earnings that were stronger than analysts expected.<\/p>\n<p>Some investors had been bracing for a downbeat earnings season after a sharp fall in estimates heading into the reporting period.<\/p>\n<p>Nick Raich, CEO of The Earnings Scout, said the results so far have been much better than what was expected, and, more importantly, &#8220;second-half estimates aren&#8217;t getting cut&#8221;.<\/p>\n<p>&#8220;There&#8217;s no doubt the underlying expectation trend has improved since October,&#8221; he said. &#8220;But can that persist?&#8221;   <\/p>\n<p>Recession worries have increased with the Federal Reserve&#8217;s aggressive interest rate hikes and the recent collapse of two regional U.S. banks.<\/p>\n<p>In aggregate, companies are reporting earnings 7.9% above expectations, compared with a 4.2% average for the last reporting periods, according to Refinitiv.<\/p>\n<p>Despite the improvement in the forecast, the first quarter still would mark a second straight quarterly fall for corporate earnings, a so-called &#8220;earnings recession&#8221; that last occurred when COVID-19 hit corporate results in 2020.<\/p>\n<p>S&amp;P 500 earnings fell 3.2% in the fourth quarter of 2022 from the year-ago period, which was more than the estimated 1.6% fall predicted by analysts on Jan. 1.<\/p>\n<p \/>\n<p> (Reporting by Caroline Valetkevitch; Editing by Alex Richardson)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/refinitiv-data-shows-smaller\/traders-work-on-the-floor-of-the-nyse-in-new-43\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3P0R7-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ3P0R7-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Caroline Valetkevitch NEW YORK (Reuters) &#8211; The estimated decline in first-quarter S&amp;P 500 earnings is getting smaller as more companies report results, Refinitiv data showed Wednesday, with a host of big names including Microsoft Corp reporting upbeat numbers this week. Analysts now expect first-quarter earnings to have fallen 3.2% year-over-year for S&amp;P 500 companies. 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