Corbin Advisors Finds Industrial Sector Sentiment Still Strong; Luster of Last Quarter Fades Somewhat Amid Heightened Concerns

• 83% of surveyed Industrial investors and analysts continue to describe
  their sentiment as Neutral to Bullish or Bullish, adding
  that management tone remains largely upbeat
• 60% expect sequential earnings growth and 50% expect earnings to beat
  consensus; while optimism remains intact, findings are off last
  quarter’s record levels
• Organic growth and EPS are expected to expand sequentially but margin
  outlooks temper amid inflation concerns
• 2018 Industrial organic growth expectations lift to 5.0%+ from 4.0% to
  5.0% last quarter, fueled by tax reform and views that global capex
  will continue to improve over the next six months
• All global economies except India and China see pullbacks in positive
  sentiment; Eurozone, Mexico and Japan see the largest degradations
• Survey participants are most bullish on Aero and Defense sectors while
  Auto garners the lion’s share of bearish views and Construction and
  Chemicals see greater resistance
  

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HARTFORD, Conn.–(BUSINESS WIRE)–#earnings–Corbin Advisors, a specialized investor relations (IR) advisory firm,
today released its quarterly Industrial Sentiment Survey, which
reveals strong 1Q18 results are expected to be driven by accelerated
organic growth and positive tax reform impact. The survey,
part of Corbin’s Inside
The Buy-side® publication, is based on responses from
25 institutional investors and sell-side analysts globally who actively
follow the industrial sector.

Optimism continues into 1Q18 earnings season, as 60% forecast sequential
improvement and more than 95% anticipate earnings to be In Line with
or Better Than consensus. Organic growth and EPS are still
expected to improve but at more muted levels than last quarter’s
all-time highs. Meanwhile, margin outlooks temper as more than 60%
report a High level of concern with rising input costs.

Continuing, 65% believe we are Mid-to-Late to Late in the
Industrial cycle with 46% forecasting earnings will peak in 2019.

Views on nearly all regional economy prospects softened, with sentiment
on Eurozone, Mexico and Japan dampening the most. Still, China, which
has been out-of-favor, and India, saw increased optimism.

Despite increased uncertainty, 83% of respondents describe their
sentiment as Neutral to Bullish or Bullish while none
characterize their views as Bearish. As well, nearly 40% report
they were Net Buyers amid the recent equity market dislocations.

“We are at an interesting inflection point this earnings season, as many
companies will likely report strong growth momentum in the first quarter
but are now faced with rising inflation and interest rates, as well as
the emergence of trade war uncertainty,” said Rebecca Corbin, Founder
and CEO of Corbin Advisors. Ms. Corbin added, “The majority of investors
are forecasting 2018 Industrial organic growth rates at a healthy 5% or
greater, as companies continue to invest in innovation, capacity
expansion and technology. Managements’ discussions on 2018 guidance
outlooks will be in focus as investors seek clarity on the long-term
impact of these mounting headwinds.”

Surveyed financial professionals are most bullish on Defense, which saw
the highest sentiment ever recorded for any industry, as well as
Commercial Aerospace. Conversely, Auto remains the biggest laggard for
the fifth consecutive quarter, while bearish sentiment increased on
Non-Resi and Resi Construction and Chemicals.

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]