Earning picture for 2006

Zacks has the latest update on earning picture for 2006 and things at this stage look bright.
Measured either by total net income growth, or by the growth rate of the median firm, the S&P 500 is expected to post double-digit growth for both 2005 and 2006. However, on a median basis, earnings growth is expected to decelerate from 13.4% in 2005 to 12.5% in 2006, while on a total net income basis, growth is expected to rise to 13.4% from 10.6% in 2005. The differences between these measures indicates a somewhat better performance for mid- to large-cap companies in 2005, but a better relative earnings performance expected in 2006 for mega-cap companies. For 2005 earnings growth has largely been about the energy sector, which accounts for 42.6% of the overall earnings growth, with only two other sectors pitching in double-digit contributions to the total growth (Industrials 15.2%, and Financials 13.5%). For 2006, the growth is expected to be much more balanced with five sectors making double-digit contributions to the total incremental earnings pie and the incremental earnings more closely matching the total 2005 earnings.