CHART: Once Again, Wall Street's Earnings Estimates Are Way Down

Unexpectedly good first quarter earnings coupled with positive economic data had some people heralding the beginning of a stronger recovery.

However, recent data has been markedly worse, and people are increasingly pessimistic. If analysts are right, a weak earnings season may confirm those fears. 

Take a look at this chart from Bespoke Investment Group:

S&P earnings forecast

Photo: Bespoke Investment Group

But this is not to say things are all bad. Indeed, Wall Street has a long history of lowballing earnings estimates.

UBS’s Jonathan Golub notes that the earlier announcers have been beating estimates.  And LPL Financial’s Jeff Kleintop notes that earnings season is usually a great time to buy stocks.

Don’t miss: Morgan Stanley’s Amazing Presentation On The State Of Everything That’s Important In The World

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.