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Worst Quarter for Corporate Profits in 3 Years

Posted By Barry Ritholtz On November 16, 2012 @ 12:30 pm In Earnings,Technology | Comments Disabled

[1]
Source: Bianco Research [2]

 

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 [3]:

-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 [3]
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 [4]
Paul Vigna
MarketBeat, November 13, 2012
http://blogs.wsj.com/marketbeat/2012/11/13/fourth-quarter-earnings-the-next-concern/


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2012/11/worst-quarter-for-corporate-profits-in-3-years/

URLs in this post:

[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2012/11/earn11141_big.gif

[2] Bianco Research: http://www.arborresearch.com/bianco/?p=58604

[3] Nasdaq: http://community.nasdaq.com/News/2012-11/q3-earnings-season-mostly-behind-us-earnings-trends.aspx?storyid=190273

[4] Fourth-Quarter Earnings the Next Concern: http://blogs.wsj.com/marketbeat/2012/11/13/fourth-quarter-earnings-the-next-concern/

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