Bloomberg: “Wall Street Profit Optimism Requires a Crazy-Good End to 2019”By admin_45 in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek's Nick Colas:
.... "The fourth quarter failed Wall Street’s equity bulls in 2018. This year, strategists are counting on earnings growth in the last three months of the year to save them.
An examination of analysts’ profit forecasts for S&P 500 Index members reveals a major outlier in expected results at year-end, according to DataTrek research co-founder Nicholas Colas. Estimates call for profit growth of about 6 percent in 2019, but the figure is skewed by a fourth quarter that’s expected to deliver double-digit annual growth in earnings -- the lone period of the year in which there’s a projected profitability pick-up.
“This whole-year 2019 estimate is based on a hockey-stick increase in both earnings growth and margin leverage in Q3 and especially in Q4,’’ Colas wrote, citing data from FactSet"....
Read the full article here on Bloomberg!