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Corbin Advisors’ Latest Industrial Sentiment Survey Finds Investor Nervousness Ebbs but Growth Remains a Concern

Deferred tariff talks and frozen interest rates serve to stave off
imminent recession concerns, though expectations are for continued
growth deceleration


  • Majority, or 66%, expect Industrial earnings to be In Line with
    consensus, with 54% modeling sequential deceleration
  • More than half, or 52%, believe the Industrial cycle won’t peak until
    2020 or later, a significant increase from 29% QoQ
  • Half expect the European economy to Worsen over the next six
    months and 36% predict the same for China; still, pessimism is notably
    less pronounced than last quarter
  • 37% report Holding Industrial investments, an increase from 22%
    QoQ; Net Buyers nearly doubled

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HARTFORD, Conn.–(BUSINESS WIRE)–lt;a href="https://twitter.com/hashtag/earnings?src=hash" target="_blank"gt;#earningslt;/agt;–Corbin Advisors, a research and advisory firm specializing in investor
relations (IR), today released its quarterly Industrial Sentiment
Survey
, which finds there is still more gas in the tank as recession
fears push out and expectations for 3.5%+ organic growth in 2019 expand.
The survey, part of Corbin Advisors’ Inside
The Buy-side
®
publication, is based on
responses from 31 institutional investors and sell-side analysts
globally who actively follow the Industrial sector.

Our survey reveals investor sentiment has stabilized amid recent
deferrals in two leading market pressures – trade discussions and
interest rate increases – while survey respondents have also come to
terms with a lower growth outlook relative to 2018. To that end, over
half expect revenue growth to Worsen this quarter and anticipate
earnings will Decrease sequentially, citing concerns with Europe
and China. Anders Roslund, Security Analyst at Pareto Securities, notes,
“Earnings will come in worse versus last quarter. There is good growth
in the U.S. but weakness in Europe.”

With last quarter providing increased certainty, as the majority of
public companies gave conservative 2019 outlooks, investor sentiment
ticked higher from Neutral to Bearish last quarter to more Neutral.

Weighing on sentiment, half expect the European economy to Worsen
over the next six months, while China strength remains a question mark.
When asked (unaided) where they are seeing economic weakness, 92% and
67% of respondents cite Europe and China, respectively.

“Our survey this quarter captured a softening in negative sentiment but
outright investor optimism is not a prevalent theme. Investors, armed
with 2019 guidance outlooks provided last quarter, are gearing for a
general slowing growth environment,” commented Rebecca Corbin, Founder
and CEO of Corbin Advisors. “The outsized market pressures that caused
December’s swoon have been deferred but not resolved. Still, the best
Industrial companies thrive in challenging economic times and likely set
in motion contingency plans last quarter. We expect some positive
surprises this earnings season but also for management teams to stay the
course on annual guides given the uncertainty ahead. In light of
expectations for slowing revenue growth, margins are in focus, and we
believe a leading topic will be inventory levels and the implications on
future under-absorption on annual guides,” Ms. Corbin added.

In terms of sector bets, Aerospace & Defense remains at the top of the
bulls board, while investors are most bearish on Auto. Transportation
experienced the largest increase in negative sentiment QoQ.

Since 2006, Corbin Advisors has tracked investor sentiment on a
quarterly basis. Access Inside
The Buy-side
®
 and other research on
real-time investor sentiment, IR best practices and case studies at www.CorbinAdvisors.com.

About Corbin Advisors

Corbin Advisors is a specialized investor relations (IR) advisory firm
that partners with C-suite and IR executives to drive long-term
shareholder value. We bring third-party objectivity as well as deep best
practice knowledge and collaborate with our clients to execute sound,
effective investor communication and engagement strategies. Our
comprehensive services include perception studies, investor targeting
and marketing, investor presentations, investor days, specialized
research, and retainer and event-driven consulting.

Inside
the Buy-side
®
, our industry-leading research
publication, is covered by news affiliates globally and regularly
featured on CNBC.

To learn more about us and our impact, visit www.CorbinAdvisors.com.

Contacts

Corbin Advisors
Bronwyn Swanson, 203-283-7997
[email protected]

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