Highly disrupted corporate and financial information flow begins recovery from COVID-19

Rhea-AI Summary

The COVID-19 pandemic significantly disrupted corporate and financial information flow, but a recovery is underway, as reported by S&P Global Market Intelligence. Key findings include a sharp rise in bankruptcy-related events (135% in March, 204% in April, and 214% in May compared to 2019) and a 216% increase in dividend reductions during March to May. In April, 300 U.S. companies withdrew guidance, with earnings forecasts mostly revised downwards. May showed increased differentiation among companies, with more active forecasts revisions by analysts.

Positive

• None.

Negative

• 300 U.S. companies withdrew guidance in April.
• Analysts revised earnings forecasts mostly downward in April.
• Increased bankruptcy-related events: 135% in March, 204% in April, 214% in May compared to 2019.
• 216% increase in dividend reductions from March to May compared to last year.

NEW YORK, June 16, 2020 /PRNewswire/ -- After being disrupted from the COVID-19 pandemic, the flow of corporate and financial information made available to decision-makers is slowly beginning its recovery, according to a new analysis conducted by S&P Global Market Intelligence.

S&P Global Market Intelligence is the division within S&P Global that provides data, essential insights and powerful analytics to help navigate the financial markets, including the ability to process and analyze more than 64,000 financial documents a day. The division's Quantamental Research team leveraged this view into document flow and found that U.S. company annual filings were delayed significantly in April and then rebounded in May compared to 2019. Overall key corporate developments spiked year-over-year, most notably in the bankruptcy category.

Other key findings from the documents analysis include:

• The overall number of analysts forecasts fell slightly in April and 300 U.S. companies withdrew guidance within the month.
• Analysts revised most of their earnings forecasts downward with fewer making positive revisions to their FY1 earnings forecasts in April.
• In May, analysts started to differentiate the winners from losers as analysts actively revised their company earnings forecasts both upwards and downwards.
• Within most sectors, analysts were more actively downgrading forecasts compared with the same period in 2019 and downgrades exceeded upgrades in all but three sectors: Consumer Staples, Real Estate, and Financials.
• Bankruptcy-related events saw a 135% rise in March, 204% rise in April, and 214% in May compared to 2019.
• Dividend reductions were 216% higher in the March through May time period compared to last year.

"Our data analytics capabilities give us a unique view into the specific areas of information disruption and the magnitude of impact from the current unprecedented global pandemic," said David Pope, Managing Director of Quantamental Research at S&P Global Market Intelligence. "As the flow of information has been severely disrupted, decision-makers will have to change their focus to more timely data sources and insights to help them make informed business decisions."

The analysis utilized data from S&P Global Market Intelligence's databases, which includes, but is not limited to Fundamentals, Estimates, Ownership and Key Developments. This report is now available on S&P Global Market Intelligence's newly launched Marketplace and other flagship products including the Market Intelligence platform and S&P Capital IQ.

To access the full report, please contact pressinquiries.mi@spglobal.com.

About S&P Global Market Intelligence 
At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. We integrate financial and industry data, research and news into tools that help clients track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). For more information, visit www.spglobal.com.

Media Contacts 
Amanda Oey 
S&P Global Market Intelligence 
Amanda.oey@spglobal.com 
(212) 438-1904

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SOURCE S&P Global Market Intelligence

FAQ

What was the impact of COVID-19 on corporate information flow according to S&P Global Market Intelligence?

S&P Global Market Intelligence noted significant disruptions to corporate and financial information flow due to COVID-19, but a recovery has started.

How many U.S. companies withdrew guidance in April 2020?

In April 2020, 300 U.S. companies withdrew guidance due to the impacts of the COVID-19 pandemic.

What changes were seen in bankruptcy-related events during the pandemic?

Bankruptcy-related events saw a 135% rise in March, 204% in April, and 214% in May 2020 compared to 2019.

What was the trend for earnings forecasts in April 2020?

In April 2020, most analysts revised their earnings forecasts downward, with fewer positive revisions.

How did dividend reductions change from March to May 2020?

Dividend reductions were 216% higher from March through May 2020 compared to the same period in the previous year.