Negative Earnings Guidance

“We expect many firms will issue negative earnings guidance ahead of 1Q reporting season that takes place from mid-April to mid-May. (i) The polar vortex and associated weak economic data has translated into negative sales and earnings revisions for nearly every sector during the past one and three month time frames. (ii) Profit margins for the broad market and most sectors stand at record high levels. Managements have been struggling to maintain current margins, a point that was made abundantly clear on the recent quarterly conference calls.” (Goldman Sachs)

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