Early earnings trends look weak
Fourth-quarter earnings season has arrived and 6% of the S&P 500 have reported so far. A quick look below shows a mediocre start. Positive surprises outnumber negatives by 2:1 and median EPS growth thus far has been 12.9%. Compared to the third-quarter’s initial metrics, this isn’t very impressive. Then, surprise ratios hovered around 6:1 and initial growth rates were closer to 15%. With only 30 companies having reported, however, it is difficult to begin extrapolating trends. As more numbers arrive, they will shed light on the degree of overall analyst surprises and earnings performance. For now, we are expecting a 2-3% median surprise and 12-14% quarter-over-quarter EPS growth.
1 comment:
Looks like the Q's finding support and headed higher. Longer term buyers are relentless.
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