Corbin Advisors Finds Industrial Investor Sentiment Upbeat Amid Bullish Executive Tone and Expectations for Strong Organic Growth

Corbin Advisors, a specialized investor relations (IR) advisory firm,
today released its quarterly Industrial Sentiment Survey, which
reveals expectations for a strong 2Q18, driven by global growth and
confidence in management actions to offset rising input costs. The survey,
part of Corbin Advisors’ Inside
The Buy-side® publication, is based on
responses from 26 institutional investors and sell-side analysts
globally who actively follow the Industrial sector.

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Survey respondents characterizing executive tone as Bullish
reaches record levels and has infused investor confidence heading into
2Q18 earnings season. The majority, 65%, forecast sequential improvement
and 95% anticipate earnings to be In Line with or Better Than
consensus. Indeed, all-time high confidence in revenue growth during the
quarter, combined with over 75% of investors anticipating companies will
effectively offset cost inflation and tariff impacts through pricing
actions, has led to strong expectations this earnings season. Despite
headwinds, nearly 60% expect operating margins to improve this quarter,
a significant increase from 33% last quarter.

Continuing, investors still believe we are Mid or Mid-to-Late in
the Industrial cycle and 64% now expect peak earnings in 2020 or later,
an increase from 42% last quarter, as views push out.

Still, investors exhibit some caution as 76% report being Neutral to
Bullish or Bullish, down from 83% last quarter. To that end,
fewer investors report being Net Buyers and instead confirm Rotating
within Industrials, more than double that of last quarter.

Views on the Eurozone, Brazil and U.S. economies softened, with the
Eurozone seeing the most significant negative swing. Conversely, survey
respondents are most positive on India and Southeast Asia growth
prospects in the near-term.

“Despite the threat of rising inflation and interest rates, as well as
escalating trade wars, executive tone is described by investors as
notably upbeat. This, in turn, has given investors extraordinarily high
confidence in this earnings season, as well as the foreseeable future,”
commented Rebecca Corbin, Founder and CEO of Corbin Advisors. Ms. Corbin
added, “The majority of investors are sensitized to the mounting
headwinds but seem focused on rotating within the sector while
overlooking growing macro risks associated with this dangerous economic
backdrop.”

Regarding sub-sectors, surveyed financial professionals are most bullish
on Defense, which saw near-record sentiment for the second consecutive
quarter, as well as Commercial Aerospace and Metals & Mining. On the
other hand, Auto remains the biggest laggard for the sixth quarter in a
row, while bearish sentiment toward Water nearly quadrupled.

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.

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