In a recent report issued by Thomson Reuters' AlphaNow, it is noted analysts have lowered the bar for first quarter earnings. The only sector that saw an increase in earnings expectation for Q1 is the utility sector. The analyst revisions result in year over year first quarter earnings growth of only 2.1% versus the 6.5% in place at the beginning of the quarter. Not surprisingly, weather is being cited as the main culprit for the lowered expectations.
|From The Blog of HORAN Capital Advisors|
The report concludes, "As the first-quarter earnings season gets under way, it will bear watching to see whether the negative effects of the weather outweigh the positive drivers of earnings, like consumer spending and the housing market rebound." Alcoa (AA) kicks off the official Q1 earnings season on April 8th.