SATS - Russell 2000 Q1 2024 Earnings Preview: Sharp Downward Revisions Precede Earnings Season

2024-05-02 07:10:00 ET

Summary

• Q1 earnings growth expectations have sharply declined more than usual as we enter earnings season.
• Over the past three months, Q1 growth projections have been adjusted downward by 21.5 percentage points, settling at a current year-over-year decline of 12.0%.
• All sectors, apart from Utilities, have faced downward revisions in their earnings growth forecasts.

By Tajinder Dhillon

Earnings Commentary

Q1 earnings growth expectations have sharply declined more than usual as we enter earnings season. Over the past three months, Q1 growth projections have been adjusted downward by 21.5 percentage points, settling at a current year-over-year decline of 12.0%. Quarter-over-quarter, Q1 earnings are projected to fall by 12.5%, marking the steepest decline since the inception of the LSEG’s Russell 2000 Earnings Scorecard. These substantial downgrades set a modest threshold for Q1.

All sectors, apart from Utilities, have faced downward revisions in their earnings growth forecasts. Notably, Communication Services, Consumer Discretionary, and Information Technology have experienced the most significant reductions....

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