Earnings Season Round-up

From Zacks:

* 436 of the S&P 500 firms have reported 3Q earnings. The remaining firms are unlikely to significantly change the overall results. Four sectors are done and five more are over 90% done.
* Strong season so far with a median surprise of 4.98%, and a 3.87 surprise ratio (317 beats, 82 misses); 76.8% of all firms reporting beat expectations.
* Positive year-over-year growth for 346, falling EPS for 87 firms, 3.45 ratio, 79.4% of all firms reporting have higher EPS than last year.
* Total net income up 27.4%. All sectors but Construction have more positive surprises than disappointments. Six sectors have surprise ratios of 6:1 or better.

Historically, a “normal earnings season” will have a surprise ratio of about 3:1 and a median surprise of about 3.0%. Thus, this is a positive earnings season, or will be if the numbers hold up as the final firms report. While the season has faded a bit from when the first firms were reporting, it still looks to be a very solid season overall.

Posted by on November 10th, 2010 at 10:57 am


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