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After a spectacular Q1, and a Q2 earnings season that blew away expectations, corporations are turning decidedly sour on their own prospects, and according to FactSet data, as companies head into the end of the third quarter 98 S&P 500 companies have issued EPS guidance for the quarter. Of these 98 companies, 74 have issued negative EPS guidance and 24 companies have issued positive EPS guidance.
The percentage of companies issuing negative EPS guidance is 76% (74 out of 98), which is not only above the five-year average of 71%, but if 76% is the final percentage for the quarter, it will mark the highest percentage of S&P 500 companies issuing negative EPS guidance for a quarter since Q1 2016 (79%).
Shift - Sentiment - Pessimism - Optimism - Number
What is behind this shift in sentiment? As pessimism is rising, optimism is fast fading: while the number of companies issuing negative EPS for Q3 (74) is just 3% below the five-year average (76), the number of companies issuing positive EPS...
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