Management Bullish Despite Low Earnings Forecasts, Corbin Perception Says on CNBC
NEW YORK (TheStreet) -- While analysts expect the majority of companies to post below-estimated reports heading into earnings season, management across the board remains bullish, investor research firm Corbin Perception's Rebecca Corbin told CNBC's Rick Santelli on "Squawk on the Street" Friday.
Corbin's firm surveyed 68 investors managing "upwards of $2 trillion" and the data released was "vastly different" than what her researchers expected based on the positive tones of most companies' management.
"I think if we take a step back ahead of Brexit, more than 50% of institutional investors we surveyed said the markets were overvalued, 46% took money off the table and heading into the second-quarter earnings season, they're largely expecting 80% inline to worse than expectations," Corbin stated.
However, the overall management's "more bullish, more optimistic" tone seems to contradict investors' outlook, she continued.
So, management is "turning less into more" essentially? Santelli asked.
"Absolutely. These companies, these management teams, have been operating in a low growth environment for a long time. They are more agile, their operational effectiveness is really getting honed and we're really starting to see that play out," Corbin explained, noting she predicts a continuation of this "theme."
Corbin referenced CSX (CSX) - Get Report which reported strong 2016 second quarter earnings of 47 cents per share on $2.7 billion in revenue earlier this week. Analysts' estimated the transportation company to post earnings of 44 cents per share on revenue of $2.69 billion as the overall U.S. transportation sector continues to fall.
The Dow Jones transportation average is lower by 0.41% to $7,983.01 while shares of CSX are slipping by 1.14% to $28.72 late this morning.
Separately, TheStreet Ratings rated CSX as a "buy" with a score of B.
This is driven by a number of strengths, which can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CSX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this author's.