More S&P 500 Companies Are Giving Downbeat Outlooks

The outlook for big companies’ first-quarter earnings could be a bit dim, a new analysis suggests.

Of the 107 S&P 500 companies to offer first-quarter guidance, 68 have given negative outlooks, according to a FactSet analysis released Monday. (FactSet defines negative guidance as a number, or midpoint of a range, that comes in lower than the Street’s consensus before the guidance was issued.) That’s above the five- and 10-year averages, FactSet said. 

The number of companies offering positive guidance, meanwhile, is below the five- and 10-year averages, according to FactSet. 

Investors are watching for clues regarding to the ongoing performance of big companies amid emerging concern about the path forward for stocks. Goldman Sachs analysts recently upped their estimated odds of a recession, citing shrinking corporate confidence and slowing economic growth. 

As a whole, the S&P 500 reported fourth-quarter earnings growth of about 18%, according to FactSet. A bit more than three-quarters of the companies beat earnings estimates for the quarter, in line with the five-year average. 

The benchmark S&P 500 finished Monday slightly higher, though it ended March down nearly 6% to mark its worst month since 2022.