Saturday, July 17, 2010

Earnings In Second Quarter 2010 Better Than Expected

Earnings for the 2nd quarter of 2010 are coming in better than expected. A few facts noted by Thomson Reuters:
  • Through July 16, 48 companies in the S&P 500 Index have reported earnings for Q2 2010. Of these 48 companies, 75% reported earnings above analyst expectations, 13% reported earnings in line with analyst expectations and 13% reported earnings below analyst expectations. In a typical quarter (since 1994), 62% of companies beat estimates, 18% match and 20% miss estimates.
  • Over the past eight quarters, 69% of companies beat the estimates, 9% matched and 22% missed estimates. In the aggregate, companies are reporting earnings that are 16% above the estimates, which is above the 2% long-term (since 1994) average surprise factor and above the -1% surprise factor recorded over the past eight quarters.
From The Blog of HORAN Capital Advisors

1 comment :

Danny Guttridge said...

I saw the large cap earnings doing very well and was hoping that small cap would do the same, and it mostly did. The one company I bought in anticipation of repeated strong earnings was Ariba Inc. (ARBA) and they missed their expectations. I was disappointed because I was trading for my boss (I'm an intern at Kapitall) and lost him a chunk of money. They say that you need to learn how to lose money just as well as you know how to make money, but I seem to be way better at losing it. I guess I just still have a lot to learn...thanks for the data though!