Data Source: Factset
Q1 Earnings Estimates bumped up to -.5% today from -.8% last week. With the pullback in the markets this week, the forward p/e multiple is back in line with the 5 year average of 16.5. This is constructive.
The only factor to keep an eye on going forward is that guidance is a bit weaker than normal. 82 companies have issued EPS guidance for Q2 2019. Of these 82, 65 have issued negative EPS guidance and 17 have issued positive EPS guidance. The percentage of companies issuing negative EPS guidance is 79% (65 out of 82), which is above the 5-year average of 70%.
