59% of surveyed investors expect sequential earnings improvement
driven by economic growth in U.S. and Europe, supported by the low
interest rate environment
Majority expect sustained or improved organic revenue growth this
quarter and nearly 60% predict EPS expansion; outlook for margin
acceleration is tempered primarily due to higher input costs
50% believe results will be in line with consensus estimates while
39% are predicting earnings beats
Majority predict the U.S. Fed will continue to raise rates in 2017
and 92% believe this policy will continue in 2018
Management tone remains positive despite a slip from last quarter’s
three-year high; more than 70% describe executives as bullish or
neutral to bullish
44% of investors now classify equities as overvalued, down from
47% last quarter and 67% in March; notably, nearly half predict
valuations will continue to expand through year-end
Investors are most bullish on Financials followed by Technology, while
Consumer Discretionary sees largest uptick in positive sentiment;
Utilities and REITs remain out of favor
Early indications suggest 2018 is expected to be another strong year
though concerns around geopolitical volatility and D.C. dysfunction
linger; North Korea worries heighten
72% expect Hurricanes Harvey and Irma to negatively impact 4Q17
U.S. GDP while 62% expect them to have a positive impact on 2018;
just over half predict 2017 U.S. GDP will expand year-over-year to
here to access the full report
Corbin Advisors, a specialized investor relations (IR) advisory firm,
today released its quarterly Inside
The Buy-side® Earnings Primer report, which captures
trends in institutional investor sentiment. The survey is based on
responses from 70 institutional investors and sell-side analysts
globally, representing over $1.9 trillion in assets under management.
This press release features multimedia. View the full release here:
Word Cloud: Frequency of Occurrence
Expectations remain strong heading into 3Q17 earnings season driven by
an improved economic outlook, supported by the low interest rate
environment. Positive momentum is expected to continue as the majority
believe organic growth, cash flow and EPS will improve in 2018, though
not surprisingly, margin expansion forecasts are muted given rising
“I expect earnings to come in better than consensus; the global economy
continues to surprise to the upside. Valuation is the big conundrum. In
a world of low single-digit 10-year yields, what is the right multiple
for the market?” commented Fla Lewis, Chief Investment Officer at
Weybosset Research & Management.
Despite record highs, fewer investors now classify U.S. equity markets
as overvalued and 46% expect valuations to continue to expand for the
remainder of 2017. Buoyed by optimism around growth prospects, 34%
describe themselves as net buyers, up from 25% last quarter.
“Coming off a strong second quarter, appetite for equities has not
diminished as investors continue to anticipate real global economic
growth and seek returns. While management tone ticked lower, the slip
likely has more to do with expectations management amid rising sell-side
consensus targets and near-term impact of natural disasters rather than
lack of growth,” commented Rebecca Corbin, Founder and CEO of Corbin
Advisors. “Channel checks reveal expectations for continued strength in
resi and non-resi construction, a global capex pick-up and greater
optimism around energy prospects. Meanwhile, the majority believe we are
in the mid-to-late stage of the economic cycle, suggesting there is more
room to run in the longest U.S. post-war recovery on record. Any
accomplishments on the U.S. political policy front are likely to
supercharge markets as most contributors anticipate legislative gridlock
as opposed to meaningful reform,” added Ms. Corbin.
The Eurozone remains the top region for economic improvement over the
next six months while favorable outlooks for India and the U.S. are
intact. Sentiment on Brazil is improving somewhat while views toward
China remain muted.
Surveyed investors and analysts are most bullish on Financials, which
also saw the lowest level of bearish sentiment in two years and both
Consumer Discretionary and Consumer Staples saw an uptick in sentiment.
Conversely, views on Utilities and REITs remain downbeat as investors
seek grow their investment opportunities.
Since 2006, Corbin Advisors has tracked investor sentiment on a
quarterly basis. Access Inside
The Buy-side® and other research on real-time
investor sentiment, IR best practices and case studies at CorbinAdvisors.com.
About Corbin Advisors
Corbin Advisors is a specialized investor relations (IR) advisory firm
that partners with C-suite and IR executives to drive long-term
shareholder value. We bring third-party objectivity as well as deep best
practice knowledge and collaborate with our clients to execute sound,
effective investor communication and engagement strategies. Our
comprehensive services include perception studies, investor targeting
and marketing, investor presentations, investor days, specialized
research, and retainer and event-driven consulting.
the Buy-side®, our industry-leading research
publication, is covered by news affiliates globally and regularly
featured on CNBC.
To learn more about us and our impact, visit CorbinAdvisors.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171012005916/en/
Corbin AdvisorsBronwyn Swanson, firstname.lastname@example.org