Daily Earnings Surprise Summary: EPS Mostly Up, Sales Mostly Down

Hillbent scans the market daily for significant positive and negative earnings surprises which may be potential catalysts for future bullish or bearish price action. The results generated are not intended to be comprehensive but allow investors to focus on the top or bottom earnings results and provide a starting point for further research efforts and the market direction.

It is important to note that a positive, negative, or in-line earnings surprise is not necessarily a respective overall positive, negative, or neutral event for a reporting company. Some of these companies may still be experiencing year-over-year positive, negative, or flat growth rates.

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Comments

[John Lounsbury:]

JC - - -

Good research. The implication is that earnings are improving through cost cutting rather than sales increases. This has limits. While there may be a large increases in earnings from increasing sales continuing over long periods of time, there are limits to how much cost cutting can be done over time.

Sales improvements must start soon to support future earnings improvements. Cost cutting beyond a certain point will further reduce future sales.

Jun 27 10:15 AM

[Old Trader:]

This gives additional ammunition to those holding the position that the market may take a leg down when the next set of quarterly numbers comes out, given that the bulk of the cost cutting has been completed, and top line growth remains elusive (I'm in that camp).

Jun 27 10:27 AM

[H. T. Love:]

On Jun 27 10:15 AM John Lounsbury wrote:

> JC - - -
>
> Good research. The implication is that earnings are improving through
> cost cutting rather than sales increases. This has limits. While
> there may be a large increases in earnings from increasing sales
> continuing over long periods of time, there are limits to how much
> cost cutting can be done over time.
>
> Sales improvements must start soon to support future earnings improvements.
> Cost cutting beyond a certain point will further reduce future sales.

John, good comment. I get worried about the aftermath of all that. Once "cutting to the bone" is done, when things do pick up again, we now encounter the problem of execution. That *may* cause a lot of earnings misses when orders roll in, analysts raise estimates and inefficiencies cause lower bottom line results for a quarter or two.

HardToLove

Jun 27 04:48 PM

[Fred Voetsch:]

Earnings are not improving, they are not as bad as some estimates.

Look at the S&P 500 data at
www2.standardandpoors....

This is not filtered by anyone, this is real data.

"Q1 2009 - 498 issues (99.70% mkt val) rptd: Qtr ending -39.0% below Q1,'08 and -25.5% off estimates, sales off -16.5%, As Reported down -51.5%"

It's all bad except it's not as bad as Q4 2008.

Jun 27 07:02 PM

[User 446916:]

Please tell me where the jobs are coming from that are improving the new and continuing jobless claims.

Are they coming from:

Retail – NOT

Financial services - NOT

Manufacturing - NOT

the auto industry - NOT

Exports - NOT

Airplane mfg industry - NOT

Electronics industry - oops, we don't have an electronics industry anymore

Apparel / furniture / appliances industries - oops, gone also

Service industry (U wipe my a$$ and I wipe yours) - Probably

Please tell me where are the jobs for 10,000,000 unemployed Americans going to come from, not in some vague distant date beyond the horizon, but in JULY, AUG, SEPT, etc......2009.
Sincerely, OLGA

Jul 13 07:58 PM