Source: Bianco Research

 

With most of Q3 earnings now reported, we can take a quick look at the numbers, and they are none too pretty. Before you roll your focus to Q4 earnings, lets pull a few numbers from Nasdaq:

-460 of S&P500 companies reporting, total earnings are down 2.2% (vs same Q3 2011);

-Total revenues are down 3.6%

-Only 38% of the companies have come out with positive revenue surprises; only 62.6% of the companies beating earnings expectations..

-Technology disappointed with total Tech earnings down 4.3%. Only 61.7% of Tech beat earnings expectations; significantly less than prior quarters.

-Basic Materials is the weakest sectors in terms of growth and negative surprises. Energy is a close second in terms of earnings growth, with total quarterly earnings down 19.8%.

-Growth was for the S&P 500 as a whole and a decline of 4% excluding Finance.

Here is the kicker: Earnings expectations for Q4 and for 2013 have yet to be ratched down in a meaningful way. Earnings expectations for 2013 are expected to be up 11%. Revenues are expected up 3.6% in 2013.

 

 

Sources:
Q3 Earnings Season Mostly Behind Us
Sheraz Mian
Nasdaq, 11/15/2012
http://community.nasdaq.com/News/2012-11/q3-earnings-season-mostly-behind-us-earnings-trends.aspx?storyid=190273

Fourth-Quarter Earnings the Next Concern
Paul Vigna
MarketBeat, November 13, 2012
http://blogs.wsj.com/marketbeat/2012/11/13/fourth-quarter-earnings-the-next-concern/

Category: Earnings, Technology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Worst Quarter for Corporate Profits in 3 Years”

  1. GeorgeBurnsWasRight says:

    Barry-

    I think there’s a number missing in the last point beginning “Growth was”. The sentence doesn’t read properly otherwise.

  2. wally says:

    “Here is the kicker: Earnings expectations for Q4 and for 2013 have yet to be ratched down”

    Said like that’s a bad thing. Why? Do we assume that once something starts down it goes down forever? Maybe the estimates haven’t been ratcheted down because they expect them to go up.

  3. carleric says:

    Gosh the sellside is banking on positive earning surprises the better to sell you some crap….what a surprise..

  4. VennData says:

    This community has been organized beautifully, don’t you thing? All of a sudden, all of Obama’s friends are broke. Well, I told you so. On the bright side, there’s lots of firing ahead.

    – Jack Welch

  5. The stock market is a good forecaster of future economic activity for the next 6-12 months.

    If we couple these lousy numbers with a primary bear market signal flashed on Nov 16 by the Dow Theory, a not so nice picture for business emerges. If it is a primary bear market, the stock market is telling us that business conditions are likely to get worse not better.

    Nothing is carved in stone; we are dealing with odds. But to me one thing is clear: I wouldn’t argue with the bear.

    Regards.