“The implication is that will have to perform even better than analysts are forecasting in general between now and the end of 2022 if the S&P 500 is to get a boost from this source,” wrote John Higgins, chief markets economist at Capital Economics, in a note.
the consensus forecast for trailing 12-month operating earnings per share, or EPS, in the fourth quarter of 2022 are around 29% above actual trailing 12-month operating EPS in the fourth quarter of 2019 — the last full quarter before the COVID-19 pandemic hit the global economy , he noted, observing that it’s also more than Capital Economics’ forecasts for nominal U.S.
The gap between forecast Q4 2022 and actual Q4 2019 12-month trailing operating EPS remains substantially negative for real estate and slightly negative for financials.
Companies have largely had no problem topping Wall Street expectations for the first quarter so far this earnings reporting season.
Despite strong earnings results this quarter, stocks have traded more or less sideways, albeit at or near record levels, as the reporting season moved into full swing this week.
Before moving to New York, he reported for MarketWatch from Frankfurt, London and Washington, D.C.