Q3 Earnings In One Chart

Tyler Durden's picture


A shockingly low 30% of S&P 500 firms beat revenue expectations in the prior quarter and while Bloomberg's data suggests around 65% beat earnings expectations, the in-period adjustment of expectations (analysts ratcheting down earnings as the season progresses) naturally biases this to look rosier. The critical question is - how much more fat is there to cut? With Sales (and outlooks) so weak, how many more jobs need to be cut to meet margin expectations? 2013 top- and bottom-line (+13.6% EPS growth) expectations remain magnificent in their optimism - do you believe in miracles?



Chart: Bloomberg Chart of the Day

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Mon, 11/19/2012 - 10:57 | 2995744 GetZeeGold
GetZeeGold's picture



Missed it by jiiiiiist that much.


No worries....our sucky rewly re-elected President with save us.....we hope.

Mon, 11/19/2012 - 10:58 | 2995751 slaughterer
slaughterer's picture

Do not knock them. We got to multiyear highs on these earnings.   They can only get better from here.  

Mon, 11/19/2012 - 11:00 | 2995761 GetZeeGold
GetZeeGold's picture



They can only get better from here.



Mon, 11/19/2012 - 11:07 | 2995782 slaughterer
slaughterer's picture

Wonder why nearly every Wall Street economist is predicting a major pick up in 2H 2013?  Think of the YOY percentage gains in Q3 2013 for rev/EPS.  

Mon, 11/19/2012 - 11:10 | 2995790 vast-dom
vast-dom's picture

the whole economy is one giant miracle.

Mon, 11/19/2012 - 11:13 | 2995796 Winston Churchill
Winston Churchill's picture

Hopium dream.

Mon, 11/19/2012 - 11:15 | 2995804 mick68
mick68's picture

Why are you so stupid?


Can't you see the writing on the wall?

Mon, 11/19/2012 - 10:58 | 2995753 Racer
Racer's picture

Of course they will beat the next time, they will just lower the bar even further to make it easy to 'beat'

Mon, 11/19/2012 - 10:59 | 2995754 Atlasshruggedme
Atlasshruggedme's picture

But relate earnings to the market... a nice 2 month ski slope.

Mon, 11/19/2012 - 10:59 | 2995755 buzzsaw99
buzzsaw99's picture

this bullshit rally is a gift to anyone trying to raise cash

Mon, 11/19/2012 - 10:59 | 2995757 LongSoupLine
LongSoupLine's picture

well...that explains the fullretard 20+ ES ramp now doesn't it?

Mon, 11/19/2012 - 11:03 | 2995762 Cognitive Dissonance
Cognitive Dissonance's picture

When companies cut back on capital investment (equipment, R&D etc) as they are now doing they're no longer cutting the fat, but rather the meat and soon the bone.

<But never will executive deferred compensation, stock options and pensions be cut because.....well, you know. Useless workers/eaters go first.>

Mon, 11/19/2012 - 11:00 | 2995763 Everybodys All ...
Everybodys All American's picture

That's where the 23 million newly unemployed show up. Or in this case don't show up

Mon, 11/19/2012 - 11:02 | 2995768 ebworthen
ebworthen's picture

Jobs?  Who needs jobs?

Sales?  Who needs sales?

This recovery is just amazing, no problems in sight.

Mon, 11/19/2012 - 11:01 | 2995769 crawl
crawl's picture

Fundamentals rendered useless with the Fed pumping money.
Logic like analysis from real, factual data doesn't work in Bernanke's world.

Mon, 11/19/2012 - 11:08 | 2995783 slaughterer
slaughterer's picture

Bears = Charlie Brown

Bernanke = Lucy

Football = Bear Profits

Mon, 11/19/2012 - 13:48 | 2996261 JimBowie1958
JimBowie1958's picture

Bulls = fat little kid

Bernanke = Willy Wonka

Chocalate Death Candy = Fed Reserve and private Debt

Mon, 11/19/2012 - 11:03 | 2995772 yogibear
yogibear's picture

The wonder of Bernanke and the Federal Reserve's debt saturation. Max-out credit junkies are having problems spending any more.

Mon, 11/19/2012 - 11:11 | 2995791 Rainman
Rainman's picture

Soon we'll be able to eat financial engineering.

Mon, 11/19/2012 - 11:18 | 2995818 mick68
mick68's picture

Soon the market will require nothing more than another round of printing, like Japan. One printing a month, every month, to keep the market afloat another day.



Mon, 11/19/2012 - 13:25 | 2996189 bugs_
bugs_'s picture

are they consuming our seed corn or burning it?

Mon, 11/19/2012 - 13:50 | 2996265 JimBowie1958
JimBowie1958's picture

Well, they are consuming seed, but not orally...and not corn seed...

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