Earnings So Far: Just Three Charts

Tyler Durden's picture


With 33% of the S&P 500 market cap having reported, earnings season has had mixed results thus far. Earnings are pacing 4.1% ahead of expectations - 2.8% excluding financials; company guidance was generally negative leading into earnings season, and thus companies are beating lowered estimates and "clearing low hurdles." Early revenue results have been weaker than bottom-line numbers with revenues missing already lowered expectations by 0.3%. However, As Morgan Stanley's Adam Parker notes, three things stand out: negative guidance persists with negative-to-positive guidance surging to a multi-year high of 4.7; Margin expansion expectations remain at multi-year highs; and the consensus EPS for the S&P 500 is being marked down slowly by 0.6% and 1.1% for 2013 and 2014 respectively. With Apple set to report, and its huge relative weighting in many of the indices still, these 'expectations' could shift dramatically.

The Ratio of Negative-to-Positive Guidance relative to Consensus Expectations is surging...

Margin Expansion Expectations remain in full hockey-stick mode...

but Earnings Estimates are being revised down...


But apart from that - it's all good, right?

Charts: Morgan Stanley

Your rating: None

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Mon, 04/22/2013 - 14:51 | 3484879 Dr. Engali
Dr. Engali's picture

Damn how do those brilliant financial guys keep knocking it out of the park in this environment? If I didn't know any better I would think they owned the gubbermint or something.

Mon, 04/22/2013 - 15:16 | 3484986 spastic_colon
spastic_colon's picture

and CAT must be buying back all those shares they announced TODAY

Mon, 04/22/2013 - 14:47 | 3484888 mdtrader
mdtrader's picture

The Dow will be green whatever the earnings are. So it really doesn't matter. 

Mon, 04/22/2013 - 15:06 | 3484968 natronic
natronic's picture

Right if earnings are bad Dow goes up because QE continues.......if earnings are good Dow goes down because free money would end.

Mon, 04/22/2013 - 14:52 | 3484905 Manthong
Manthong's picture

Thank God for financials (after all.. it is His work).

Mon, 04/22/2013 - 15:02 | 3484945 LawsofPhysics
LawsofPhysics's picture

Yes indeed.  Now please remind me, what product of real fucking value did these paper-pushers actually create again?  I mean aside from fraudulent "financial products" of mass destruction of course.  Roll the motherfucking guillotines already.

Mon, 04/22/2013 - 15:45 | 3485133 shermacman
shermacman's picture

Upon deep, deep analysis, I predict these dismal numbers will be positive for the Dow.
Moar dismal numbers, please! 

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