Earnings Beat Rate Off The Charts

Even though a few more companies have to report this evening, the current tally of US companies reporting earnings this season is now at 191.  Of these 191 companies, 71.7% have beaten earnings per share estimates.  In the first quarter, 62% of companies beat earnings estimates, which marked the first quarter over quarter increase since the start of 2007.  Investors were worried heading into this earnings season that last quarter's numbers would be difficult to top, causing the market to struggle.  However, the current earnings season has come in much stronger than last quarter so far.  No wonder the Nasdaq has been up every day since earnings season began 10 days ago.

 

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Comments

[Cool]

One of your best posts! Also, what was the record high on this chart?

http://bespokeinvest.typepad.com/bespoke/2009/07/62-is-the-magic-number.html

Maybe you guys can post an update to that chart.

[svg]

Only in a market of fools (read: our society) would a "beat rate" matter instead of the actual numbers. So analysts lower the bar and companies beat it, and that's a good thing??? Who cares! Top line is not good. Bottom line is good because of job and expense cuts, inventory filling, etc.

[Kirk]

This is a completely useless statistic. The analysts get the vast majority of their information from the companies themselves. So do you really think they are going to set the bar high for themselves?

If we were seeing a massive revenue increase, I might think this is great - kind of like the late 90s when the dot.com companies were blowing the lid off revenues. Of course, that didn't end well, but these earnings beats are due to cost containment - not growth. Certainly, it is good to see corporations managing effectively, but it doesn't justify the current price of the market.

[Generic Viagra]

Fortunate ones! This year, in my case and my fish store, was a total loss. I am hoping top recover this next year, since the economical situation in the world is starting to get better.