Good morning. As earnings season continues, new data from S&P Global Market Intelligence takes a look at the dialogue around tariffs and their impact on forecasts.
Tariffs have dominated investor discourse since April 2 when President Trump announced sweeping tariff reform. Trump announced on April 9 a 90-day pause on certain tariffs. Meanwhile, a 10% tariff on nearly all global imports, a 25% levy on imported cars and certain auto parts, and a 145% tariff on goods imported from China are still in effect.
S&P Global Market Intelligence finds that, out of 423 earnings calls, 42% have included a discussion of tariffs, with 22% citing material risks. The analysis from April 1-16 is based on the S&P Total Market Index for U.S. companies. And data from the S&P Global Broad Market Indexes for the U.K., Canada, Europe, Australia, China, India, Japan, Mexico, and emerging countries.
According to the findings shared with CFO Daily, analysts are lowering earnings forecasts to account for tariffs. Consensus full-year revenue estimates for 40% of companies worldwide have now been revised lower. This is most notable in the U.S., Europe, and the U.K.
For U.S. firms, analysts are downgrading earnings projections the most for those in the energy sector (61%), consumer discretionary (59%), materials (59%), and financials (57%), according to S&P Global Market Intelligence.
Fueled by growing economic worry due to the trade war, oil prices are falling to the lowest levels since 2021. And economic uncertainty is pressuring consumer discretionary spending.
This week, Big Tech kicks off its quarterly earnings season. Tech analysts are focused on Tesla today as it's scheduled to report Q1 earnings after the closing bell.
Sheryl Estrada
sheryl.estrada@fortune.com
