About a week ago I was reading that during this reporting season most companies had come in beating or in line with expectations, however this seems to have changed for the worse.
ADVFN reported this morning the following.
That following the sharp drops seen last Friday on Wall Street, with some observers now fearing that recent poor company earnings from several technology heavyweights -such as IBM or Google- may be a harbinger of economic weakness to come. That, at last, is what some analysts are saying as the corporate confession season trundles on.
To be had in account, this week will see another deluge of company earnings in the US, with those in Europe progressively ramping up.
According to Thomson Reuters data, out of the 8% of companies on the STOXX Europe 600 index that have reported results so far, 48% have missed forecasts.
Back in the US, of the 116 S&P 500 companies which have confessed thus far, 58% have missed on revenue expectations, as the economy took a tool on their results.
The Nasdaq seems to be leading the way on turning negative with the 20/50 crossing over to the downside. The Dow and S&P seem to be clinging on, much may well depend on how Caterpillar, Texas Instruments and Yahoo do when they report this week.
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ADVFN Market reports on today's earning numbers.
ReplyDeleteWhile Caterpillar beat earnings forecasts in the third quarter, the industrial machines giant's guidance was disappointing: the company estimates that full-year earnings per share (EPS) will be $9.00-9.25, down from $9.60 last year and below the current $9.40 consensus estimate.
"The general trend of the earnings season appears to be continuing today. Of the 12 companies that reported before the opening bell, 10 beat earnings expectations however only half reported higher revenue from a year earlier. With the global economy expected to deteriorate before it improves, these figures are likely to worsen in the coming quarters," said market analyst Craig Erlam from Alpari.
Of the 123 S&P 500 companies that have reported results so far, 60.2 per cent have topped analysts’ expectations for earnings, but 61 per cent have missed revenue forecasts, according to Thomson Reuters data. Third-quarter earnings are expected to fall 2.4 per cent from a year ago.
ReplyDeletehttp://www.cityam.com/wealth-management/us-flat-macro-fears-offset-strong-earnings