Now that the second quarter has come to a queasy finish, it's time to look ahead at what to...

Now that the second quarter has come to a queasy finish, it's time to look ahead at what to expect for the next quarter. Looking back on the recent quarter, with nearly 85% of the S&P 500 companies reported, it doesn't bode well. Just 51% have exceeded net profit expectations, and only 40% or so beat on revenue. Even more disconcerting is that more than 50% of the companies in the index have already lowered estimates for Q3, while only 21% have raised.

Comments (11)
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
    They lowered expectations and we are at 1400 in the S&P. I think next earnings season should be superb. We will have more beats because the guidance of many companies was pretty conservative really.
    7 Aug 2012, 08:14 PM Reply Like
  • HarryWanger
    , contributor
    Comments (189) | Send Message
    Superb in the sense of beating much lowered expectations. But with SPX at 1400 now ON those lowered expectations, imagine the euphoria when they all "beat" next Q.
    7 Aug 2012, 08:27 PM Reply Like
  • James Sands
    , contributor
    Comments (2637) | Send Message
    None of that matters once the stimulus comes our way. Tomorrow will be a down day though.
    7 Aug 2012, 08:37 PM Reply Like
  • nightfly
    , contributor
    Comments (1015) | Send Message
    This could be the business cycle starting to turn, irrespective of the economy. The amount of earnings growth and the time over which they have grown are very much extended and have no precedent (deflation is a good thing for earnings: lower salaries, fewer workers, lower input costs) but it has run its course. Future earnings growth will have to be on increased revenues and not primarily cost savings.
    7 Aug 2012, 08:58 PM Reply Like
  • mike mohr
    , contributor
    Comments (452) | Send Message
    Not to worry Ben will push the S&P over 1500 to make things look good.
    7 Aug 2012, 09:04 PM Reply Like
  • berniespear
    , contributor
    Comments (251) | Send Message
    Get it while it's hot!
    7 Aug 2012, 09:21 PM Reply Like
  • RSI Raistlin
    , contributor
    Comments (474) | Send Message
    Anyone else pulling their hair out with this market? And I am net long I'm up over 10% since last wednesday but this market is scary as hell. One day this week or next some low level Spanish fiscal officer will drop us 250.


    Took alot off today, stocks I love too.
    7 Aug 2012, 09:23 PM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
    SA Editors
    If you want to provide a service, how about comparing the corporate and analysts "estimates" to last years quarter and YTD actuals?
    7 Aug 2012, 10:33 PM Reply Like
  • kyleg17
    , contributor
    Comments (174) | Send Message
    Am I missing something that happened or has fundamentally changed from last Monday? Or do you guys think you are jumping the gun on all this?
    8 Aug 2012, 02:04 AM Reply Like
  • dapperdann
    , contributor
    Comments (3) | Send Message
    The market cash when the S&P 500 hit 1450 last time, 1500 would be something new?
    8 Aug 2012, 02:50 AM Reply Like
  • Deepv
    , contributor
    Comments (517) | Send Message
    Zero hedge wannabes keep saying how bad earnings are, but common sense shows the S&P is still on a low multiple, even after "lowered" expectations. Bulls have been climbing on bears faces sicne 666 bro', interest rates at rock bottom, and labor still has no pricing power to threaten 50's style margins.
    8 Aug 2012, 05:34 AM Reply Like
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