90 Day Treadmill Confession Time Begins-Expected Winners and Losers

90 Day Treadmill-Earnings Season

Alcoa’s, (AA) earnings release Monday April 11th, marks the unofficial start to the 90 day treadmill confession season, better known as earnings season.

Over the next several weeks thousands of public companies will report their results for the last 90 days, with each company’s management team focused on painting as positive of picture as legally possible.

A singe digit number of residents of our favorite domestic index, the S&P 500, report this week, with a much greater group reporting next week and peaking in member reporting the following week.

As we begin the season, here is what investors are expecting according to Thomson Reuters:

• S&P 500 Growth this Quarter versus the same Quarter a year ago (Y/Y): 11.6% 

The two winning estimated earnings growth sectors:

• Materials and Energy with a 35% and 32% expected Quarter Y/Y growth.

The two losing estimated sectors are :

• Utilities and Telecommunication with losses expected of -4.8% and -3.6% Quarter Y/Y respectively.

We will keep you updated as the estimates become results, and market participants voice their opinions.

Have a Good Day!

JK