Recurring Revenue Makes Forecasting the Recovery Easier

(CFO)

The systemic shocks caused by the current crisis have destabilized traditional macroeconomic assumptions and scenarios to forecast market demand and long-term revenue. Will stock markets remain resilient? Will the historic fall in global trade rebound? Will embattled business sectors revive? Will unemployment ease?

The answers to these and other questions typically can be found in historical and real-time economic data trends. But the shifting nature of economic data in the current crisis weakens the reliability of macroeconomic models. This risk is evident in the more than half of companies in the S&P 500 that either withdrew or reduced their earnings guidance at mid-year.