Source: FactSet
Not much has changed in the last week on the earnings front. The good news is that Q1 2019 earnings expectations are very low and will likely be beaten. The bad news is that even if expectations are beat by ~3% – which is normal – they would still be negative for two consecutive quarters in a row (sequentially).
With the magnitude of last quarter’s sequential drop, a second negative quarter could imply more trouble ahead as we explained in our article below (which covered 30 years of quarterly earnings):
As explained in the article above, a lot of things can go RIGHT in the coming weeks (Brexit, China, etc), but in the mean time we have to take the facts as they are today.
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