Falling Crude Oil prices along with the slow pace of global economic growth are weighing on analysts’ estimates for S&P 500 revenues and earnings. They’ve lowered their revenue growth rates for 2014 and 2015 to 3.4% and 3.0% as of the week of December 4. At the beginning of October, when the price of oil was just starting to crash, they were predicting 3.9% and 4.2%.
At the start of October, their estimates for earnings growth were 7.9% and 12.4% for this year and next year. Now they are estimating 7.0% and 9.3%. They’ve slashed their estimate for Q4-2014 by 6.5% since then, down to $29.91, slightly below Q3’s $30.06. That’s the S&P 500’s biggest decline since Q1-2009. Most of these downward revisions are attributable to the slashing of revenues and earnings estimates by energy industry analysts.
Today's Morning Briefing: Slipping in the Oil Patch? (1) The global growth question. (2) A new financial crisis? (3) Financial jitters could delay dropping “considerable time.” (4) Is Yellen still the “Fairy Godmother of the Bull Market?” (5) CRB raw industrials spot price index still consistent with muddling global economy. (6) US still stands out. (7) Eurozone stagnating, especially in Italy and France. (8) Japanese live in small places. (9) Chinese bank loans producing less bang per yuan. (10) India and Brazil production numbers are weak. (11) Energy analysts depressing S&P 500 estimates for revenues and earnings.
