72 $SPX companies issued positive Q3 EPS guidance vs. 44 negative—the most optimistic guidance ratio since Q3 2021.
This is a sentiment indicator, not a predictive one. Companies tend to guide optimistically near cycle peaks when they believe their own stories. Remember: guidance reflects management's narrative, actual results reflect reality. The gap between the two has historically widened before corrections.
Watch what they do with capital allocation, not what they say about next quarter.
This is a sentiment indicator, not a predictive one. Companies tend to guide optimistically near cycle peaks when they believe their own stories. Remember: guidance reflects management's narrative, actual results reflect reality. The gap between the two has historically widened before corrections.
Watch what they do with capital allocation, not what they say about next quarter.