The drop in estimates hasn't been minimal either. The average stock in the MSCI World Index has seen its sales growth estimate drop over the last three months by 4.4% and its EPS growth estimates fall by -7.2% for the next fiscal year. Eight out of the 10 sectors have seen its 3-month change in EPS growth estimate fall by at least 6%. And all 10 sectors have negative changes in its sales and earnings growth estimates.
Monday, October 6, 2014
Sales and Earnings Estimates Are Falling Swiftly And Broadly
At least 75% of all stocks in each MSCI World sector have seen sales and earnings estimates fall over the past month. Only 10% of industrial stocks have had an increase in sales estimates over the past month and only 16% of industrial stocks have had an increase in earnings estimates. Over the past six months, consumer staple sales estimates have almost universally fallen. Only 14% of consumer staple stocks have had an increase in earnings estimates over the past six months. The energy sector is the only sector where at least half of the stocks have had positive sales estimate revisions. No sector over the past six months has had more than 45% of the stocks in the sector experience positive EPS revisions.