Tuesday, June 1, 2010

Strategy / Earnings Review - Downdraft Of Fear; Longerterm Outlook Still Positive - 1/6/2010

No Major Corporate Earnings Surprises

After three consecutive quarters of positive earnings surprises, the earnings reporting season that has just ended showed that the bulk of the corporate results that we covered were within our as well as market expectations. Of the 93 companies that we covered, 73 of the results (78.5% of the total) were within our expectations. Only nine companies (9.7% of the total) reported earnings that exceeded our projections, while the remaining 11 results (11.8%) were below forecasts (see Table 1). A fairly similar picture was reflected in the consensus numbers, where 66.7% of the reported earnings were within expectations, while those reported earnings that were above and below forecasts were roughly equal, i.e. 17.2% and 16.1% of the total, respectively.

Strategy / Earnings Review - Downdraft Of Fear; Longerterm Outlook Still Positive - 1/6/2010

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