Q4 earnings off to a weak start despite "low bar"
1. ~16% of the S&P 500 has now released 4Q19 numbers and the prints continue to reveal an underwhelming average “beat rate” of 65% vs. the historical average of 72%.
2. this is a more concerning signal, especially in light of earnings expectations for every sector having been revised lower throughout 4Q19. Estimates for the S&P 500 overall were revised lower by -4.1% in the final three months of last year.
3. The actual Y/Y EPS growth rate (based on companies that have reported) for the S&P 500 is -0.27%, while the Blended EPS growth (results + estimates for unreported companies) is tracking -1.92%.