From Financial Modeling Prep: 2025-03-04 05:49:30

Citi strategists warn that current S&P 500 earnings estimates may not fully account for risks from proposed tariffs by Trump. A strong Q4 performance set a positive tone for 2025, but potential tariff impacts could lead to downward revisions in estimates.

Despite strong fundamentals, Citi expects 2025 earnings estimates to drop to $265-$268 before stabilizing near $270. Analysts are cautious due to ongoing tariff uncertainties and potential adverse effects on earnings.

Citi remains in a “wait and see” mode as tariff headlines persist and key implementation dates approach. They emphasize the need for more granularity before factoring policy effects into base case assumptions.

Historical trends show positive earnings surprises often lead to sustained performance, but Citi warns of potential downward revisions to 2025 earnings estimates due to policy-induced headwinds. Investors can explore earnings trends with Financial Modeling Prep’s Historical Earnings API.

Despite tariff risks, the S&P 500 started 2025 with strong fundamentals. Citi’s analysis highlights the market’s resilience anchored by robust earnings data. Investors can delve into valuation metrics with Financial Modeling Prep’s Key Metrics (TTM) API for insights on financial ratios.

Citi strategists urge vigilance despite Q4 earnings beat de-risking growth challenges. They stress ongoing tariff headlines and macroeconomic headwinds could prompt further earnings estimate revisions. Investors should monitor policy developments closely for potential volatility in the S&P 500’s earnings outlook.



Read more at Financial Modeling Prep:: S&P 500 Earnings Estimates Face Downside Risk Amid…