^[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/