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Podcast: All into Account
Episode: Equity Strategy: Q4 Preview - the downtrend in earnings momentum is not changing
Description: Speaker: Mislav Matejka, CFA - Head of Global Equity Strategy
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For Q4 results, the activity momentum has generally decelerated in the quarter, which calls for a sequential weakness in earnings delivery. The good news is that the hurdle rate has come down aggressively, for S&P500 from 10% to only 2% yoy. Given this, the actual results are likely to yet again beat the much lowered estimates. The problem is that the market really needs some net earnings upgrades to advance from current levels, not just the beats vs heavily lowered projections, in our view. This is b...