Corporate earnings are on track for the biggest decline since 2009, headed toward a roughly 14% fall for the first quarter from the year prior, according to FactSet. However, investors appear more willing to take bad news in stride. Shares of companies reporting weaker-than-expected earnings have on average fallen 1.1% from the two days before their report through the two days after. That is well below the average 2.8% decrease recorded over the past five years for companies missing estimates, according to FactSet.
Company guidance has been sparse as corporate leaders have struggled to project estimates for the future during the coronavirus pandemic. Meanwhile, analysts and economists have been torn about the path of the economic recovery in the U.S.