A low bar has been set for year over year earnings exceptions for the first quarter. According to ThomsonReuters, "the earnings growth rate for the S&P 500 for Q1 2012 is 3.2%. Excluding Apple (AAPL), the overall growth rate declines to 1.8%. The Industrials (10.6%) and Consumer Discretionary (6.6%) sectors have the highest growth rates for the quarter, while Materials (-14.7%) has the weakest growth rate." Factset has a slightly lower earnings outlook for Q1 noting, "the estimated earnings growth rate for Q1 2012 is -0.1%. Seven of the ten sectors are predicted to see a decline in earnings in Q1 2012, led by the Materials (-14.5%) and Telecom Services (-10.1%) sectors."
|From The Blog of HORAN Capital Advisors|