U.S. companies will post no earnings growth this year as the coronavirus outbreak becomes widespread, Goldman Sachs warned, as fears over the economic fallout from the epidemic have intensified.
The bank revised lower its baseline earnings per share estimate to US$165 this year, down from US$174 previously — representing no growth. By comparison consensus is for companies on S&P 500 in aggregate to post earnings growth of about 7.7 per cent this year, according to data provider FactSet.
“Our reduced forecasts reflect the severe decline in Chinese economic activity in 1Q, lower end-demand for U.S. exporters, supply chain disruption, a slowdown in U.S. economic activity, and elevated uncertainty,” David Kostin, U.S. equity strategist, said.
As of Thursday morning there were more than 82,000 confirmed cases of the coronavirus globally and more than 2,800 deaths, according to the World Health Organization.
The rapid international spread of the virus has reignited fears