With the economy - and the future of corporate profits - now one giant question mark, more and more U.S. companies are pulling financial guidance as the spread of the coronavirus and subsequent rolling breakdown of economies around the world render previously issued forecasts moot, according to ZeroHedge.
According to calculations from Bloomberg's Crystal Kim, at least 25 companies joined the list of firms withdrawing guidance over the past week with the reporting season unfolding. Since the start of the year, at least 130 firms, or 26% of S&P 500 constituents, have pulled or reneged on their quarterly or full-year projections for sales or earnings.
That compared with zero withdrawals for all of 2019.
Consumer-discretionary companies have taken the biggest hit, with more than 61% of them scrapping outlooks as the virus outbreak has forced retail stores and restaurants to close. From airlines to chipmakers, few industries have been spared as the pandemic disrupts global supply chains and hurts demand in an economy that according to some economists is heading for its worst recession in decades.