This week’s avalanche of profit downgrades is only the beginning

Investors are bracing for a grim string of profit downgrades as the war in the Middle East drags on and the Reserve Bank of Australia lifts interest rates, despite brokers hanging on to bullish outlooks set months ago.

Excluding energy stocks, which have soared since Iran closed the Strait of Hormuz and sent fuel prices skyrocketing, brokers have slightly reduced their earnings expectations for the S&P/ASX 200 this financial year since the war broke out, even as companies repeatedly warned of pain.

Source: https://www.afr.com/markets/equity-markets/this-week-s-avalanche-of-profit-downgrades-is-only-the-beginning-20260420-p5zpd4