Positive Surprises Winning in a Landslide
The fourth quarter earnings season is almost halfway over. So far, 225 S&P 500 firms have reported. Despite some high profile misses, so far the results look pretty strong. Positive surprises have out numbered disappointments 135-42, with 49 hitting expectations exactly. The median growth rate of the firms that have reported is 14.2%. If this pace is maintained, it would mark the 15th straight quarter of double-digit earnings growth for the S&P 500. With 45% of the precincts in, we are prepared to make a call on this ÂelectionÂ. This was a good quarter for corporate earnings growth. With better than a three to one ratio of positive surprises over disappointments, it looks like it is shaping up as a landslide.
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