Investors who thought the last few quarters' corporate earnings were bad could be in for an even worse shock when the numbers start rolling in for the first quarter of 2016.
According to Thomson Reuters I/B/E/S, S&P 500 earnings are forecast to drop nearly 7 percent from the same quarter last year. If that were to happen, it would represent the third-straight quarter of year-over-year profit declines, which is already giving some experts a reason to say that corporate America is in an "earnings recession."
The estimated 6.9 percent decline in S&P 500 companies' earnings would follow a 2.9 percent forecasted earnings drop for the fourth quarter of 2015, and a 0.8 percent drop in the third quarter. As for revenue expectations, the forecast for a 1 percent decline would make it the fifth-straight quarter of year-over-year sales declines.