Thursday, July 17, 2008

How 'Bout Them Earnings?

Bespoke Investment Group has a surprising statistic out this morning: with 11% of the S&P 500 companies reporting, Bespoke has calculated the current quarter's EPS beat rate to be 72%. There are a lot of earnings reports still to come, but if it holds, the 72% beat rate will be the second highest in the past decade.

Even more impressive is the additional statistic that 34% of the companies that have already reported are in the financial sector, which has to be considered among the most earnings challenged in the current environment.

The beat rate will be an important trend to watch.

4 comments:

Damian said...

With only 11% reporting, it's difficult to judge anything from that stat - rather typical of Bespoke recently. And, of course, the companies have significantly talked down their earnings prior to the announcements. Still, a good start.

Anonymous said...

ya, but the problem is that they've lower the expecting ALOT going into the earning... so what if the beat rate is high, with PURPOSELY lowered expectation, of course you going to get alot of BEAT rate!

Anonymous said...

If they continue to lower the bar so low that Billy Barty trips over it then the "BEAT" rate will be reduced to being meaningless...

fat_tail_rider said...

What everybody else said, plus . . . Merrill Lynch, Google and Microsoft . . .

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