This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Q2 Earnings Sees Record Negative Guidance: FactSet

NEW YORK ( TheStreet)--Second quarter earnings guidance is on track to break a record for S&P 500 companies, according to data published Friday by FactSet, a financial services research company.

Eighty seven S&P 500 companies have issued negative second quarter guidance, FactSet found--more than in any previous quarter since the company began collecting such data in 2006.

By contrast, just 21 companies have issued positive guidance, which is on track to be a record low number. The current records--both for high negative guidance and low positive guidance--were set in the first quarter of this year, when 86 companies were negative and 25 were positive in their earnings guidance.

In terms of sector (with a minimum of five companies issuing quarterly EPS guidance) financials have been most negative, with 100% of the companies that issued guidance being negative. That is followed by materials (90%), industrials (82%) and information technology (81%).

Despite all the negative guidance, FactSet found it didn't necessarily lead stocks lower. Electronic Arts (EA - Get Report), for example, issued negative guidance on May 7, saying it would lose $0.62 per share in the quarter compared to consensus estimates of a $0.37 loss. Nonetheless, shares rose 20% from the time period starting two days before the guidance was issued through two days afterward.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EA $62.10 -0.35%
AAPL $93.85 -1.00%
FB $117.44 0.61%
GOOG $694.31 0.48%
TSLA $241.32 -2.60%


Chart of I:DJI
DOW 17,805.62 -25.14 -0.14%
S&P 500 2,060.07 -15.74 -0.76%
NASDAQ 4,764.12 -41.1710 -0.86%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs