Another Dip in the Earnings Beat Rate

More than 1,800 US companies have now reported third quarter numbers, and as shown below, the percentage of them that beat earnings estimates has dropped below 70% to 69%. Based on the first half of earnings season, it looked like this quarter might register the highest "beat" rate in at least a decade, but if the trend continues, this quarter might not even beat the 68% reading seen in Q2 '09. Earnings season ends next Thursday when Wal-Mart (WMT) reports.

Comments

[berated:]

Cetin finally has some competition as "Most Annoying Poster" on SA....

Nov 06 10:28 PM

[The shark:]

I am not the brightest guy around but let me see if I have got this right - housing is collapsing, debt to GDP is at it's highest levels since WW2, unemployment is at 10.2% (alternatively +17% depending on how you look at it) and from your commentary Earnings beat's (even at the low ball numbers AND huge QE measures) will probably not exceed Q2 beat's? BUT the market rally continues - something surely is not adding up - I appreciate markets are forward looking - but do they really look 5 - 8 years out? It seems to me that the Governments around the World are in some twisted alliance with the bigger "movers and shakers" pumping the market to create the illusion that recovery is just around the corner and in so doing buy the "recovery" some much needed time. The Hang Seng as an example on more occasions than is statistically reasonable has increased and decreased by exactly 1.8% on a daily basis - have the "players" become so complacent that they no longer even try to disguise the "game". To me and I sincerely hope I am wrong this "game of shameless manipulation" can only last for so long before the "game" must end - the consequences are enormous - the average man in the streets confidence in the "system" of governance and markets will be irreparable damaged, so much so that the Dow may indeed decline to the "doomsayers" 400. All the man in the street wants is to see and understand is reality, so we can address it and start the "baby steps" to recovery - everyday that the illusion continues, the worse it gets and the harder it will be to recover from the eventual aftermath. I am glad it is not me when the real truth unfolds - and it will!

Nov 07 08:55 AM

[joes:]

What kind of isolated and ignorant existence does one live that leads one to believe that the "game of shameless manipulation" is anything new?

The "game" has been going on for thousands of years, and its't about to change, and the people who get taken will continue to get taken now and then, while complaining about trickery when things go bad.

Nov 07 11:49 AM