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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GetZeeGold's picture



Missed it by jiiiiiist that much.


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

slaughterer's picture

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

GetZeeGold's picture



They can only get better from here.



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.  

vast-dom's picture

the whole economy is one giant miracle.

mick68's picture

Why are you so stupid?


Can't you see the writing on the wall?

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'

Atlasshruggedme's picture

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

buzzsaw99's picture

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

LongSoupLine's picture

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

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.>

Everybodys All American's picture

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

ebworthen's picture

Jobs?  Who needs jobs?

Sales?  Who needs sales?

This recovery is just amazing, no problems in sight.

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.

slaughterer's picture

Bears = Charlie Brown

Bernanke = Lucy

Football = Bear Profits

JimBowie1958's picture

Bulls = fat little kid

Bernanke = Willy Wonka

Chocalate Death Candy = Fed Reserve and private Debt

yogibear's picture

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

Rainman's picture

Soon we'll be able to eat financial engineering.

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.



bugs_'s picture

are they consuming our seed corn or burning it?

JimBowie1958's picture

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