Companies Set to Beat Lowered Bar for Earnings Season

Discussion in 'Trading' started by bonds, Jul 9, 2013.

  1. bonds


    As of Friday, 122 companies in the S&P 500 had made pre-announcements, and the ratio of negative to positive was 6.5-to-one, according to Thomson Reuters. That is the biggest percent of negative readings since 2001.

    The headline after the close today was "Alcoa Kicks Off Earnings Season With a Beat"

    "Alcoa, the first out of the gate with second-quarter earnings, delivered a beat on both earnings and revenue.

    Upon closer look of Alcoa's beat

    A week ago AA was expected to make over $0.07 (or today's result would have been a miss)
    A month ago: over $0.10
    In January: $0.17
    Just over a year ago: $0.30
    In January 2011: Q2 2013 EPS was supposed to be almost $0.70 cents
    So: from January 2011 to today, the company's "consensus" EPS forecast was revised from just under 70 cents to $0.06 cents. But hey: at least it "beat".

    Is it just me or does every earnings season for like the last few years always end up being a "The bar is just set so low its kind of hard not to beat it!" I dont even think growth matters any more its all about beating the numbers... the joke that is wall street!!!

    I just took a quick look at ES futures and they are already up 6.5 pts (not surprisingly) on this great start to earnings season, I am guessing the market will be at all time highs by the end of earnings season its not gonna take much to beat these lowered expectations... but we'll see.

  2. What a mess,first youy saying its negative 6 to1 ,than you are upbeat make up your mind,doh
  3. bonds


    Im saying the market will go higher because companies keep lowering the bar by cutting their guidance... making it easy to "beat" the lowered numbers.
  4. TOTALLY disagree market will go lower SELL SELL SELL