FNArena’s Weekly Insights – July 10 2023
In this week’s Weekly Insights:
-Earnings Forecasts: Slip Slidin’ Away
-FY23 Returns: Details Matter
-Small Caps In Focus
By Rudi Filapek-Vandyck, Editor
Earnings Forecasts: Slip Slidin’ Away
The Australian share market has been doing it tough in July, following a rally in June that nobody was genuinely able to properly explain, except, of course, those market commentators that are always brimming with optimism, no matter what the circumstances.
Meanwhile, beneath the surface, the trend in earnings forecasts is accelerating, in the wrong direction.
On UBS‘s assessment, consensus forecasts are now falling rapidly and markedly, the past few weeks removing -0.6% and -1.4% off the average projected EPS forecast for FY23 and FY24 respectively.
Main victims are resources companies, both materials and energy sector, as well as healthcare (the CSL-effect), real estate and consumer discretionary.
The safest sectors, as things stand right now, are utilities, technology and the insurers.
