Here is an update from my earnings and revenue cheat sheet and the trends still remain similar to Q2 in that most companies are beating eps estimates while slightly more than half are beating revenue forecasts. The relative positive though is the amount of the beats are exceeding what was seen in Q2. I have 83% of companies beating eps estimates and 59% exceeding revenue estimates. In Q2 it was closer to 75% beating eps expectations with about half beating revenue estimates. The bigger rally in stocks from mid to July thru earnings season relative to what we’ve seen so far in response to Q3 was mostly due to the backdrop of a 7% fall from mid June heading into Q2 earnings reports in July that set the bar low. Also, there was more investor surprise to the Q2 earnings beats than there is so far for Q3, notwithstanding the statistical beats to estimates.
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