Our survey recorded a sharp pullback in positive investor sentiment and perceived management tone but outright bearish views remains muted

• Over half, or 52%, expect 4Q18 earnings to be In Line with consensus, though only 28% expect sequential improvement; nearly 60% anticipate FY 2019 guidance outlooks to be Weaker than 2018
• Sentiment reflects an overall cooling as those reporting a Bullish or Neutral to Bullish stance fell to 48% from 67% QoQ; 55% described management tone as Neutral to Bullish or Bullish, down from 84%
• Revenue growth is expected to Worsen, as is EPS growth to a lesser extent; notably, slightly more believe margins will remain intact than worsen given confidence in management’s ability to offset cost headwinds
• Nearly half of those surveyed expect Global PMI to Worsen over the next six months, with some of the most downbeat economic outlooks recorded since survey inception in Jun. 2015
• 44% report increasing cash holdings, with 75%+ placing More emphasis on balance sheet strength, operational excellence and scenario planning for a downturn as they assess investments

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