90 Day Treadmill aka Earnings Season Q3 2011 Final Scorecard, Wow! (20% Growth)

The 90 Day Treadmill, also known as Quarterly Earnings season, has mostly come to an end. We wanted to report the winners and losers to you, as much for our own tally, as well as our readers.

Bottom line:

With almost all companies in the S&P 500 reporting a stunning earnings growth of 20%; the index returned a whopping 5.7% during that period. While not all company managers predicted a rosy outlook, the next quarter revision for all S&P 500 was down slightly by -.4%, thereby tempering future expectations, it is not hard to see why many make the case capital markets are undervalued, this is only an opinion, of course.

The Details:

Using the data from our prior treadmill post, we tally the expectations versus the actual results. Here is how each sector did, again from Thomson Reuters:

Top:

  • Energy – Expected 48% Versus Actual 56% (Wow)
  • Materials – Expected 24% Actual 32% (Wow Again)
  • Consumer Discretionary/Luxury –  Exp 19% Actual 20 % (Again a beat, but the Financial Sector jumped their neighbor sector and came in at 21% with a much lower expectation)

Bottom:

  • Utilities (-$4) Versus Actual + 1.8% (Not bad!)
  • Health  4% Versus 9.3% (Excellent)
  • Telcom 6% Versus a 14% Actual (Great)

Recall there are multiple general sectors that most analyst categorize economies into. Ones caught in the middle from above and thereby were left out were, Financials, which turned in a much better number, jumping into third place. The other missing sectors, Technology, Staples (think groceries), Industrials did very well too.

Have a Happy Monday, and a Great Week, as Turkey day nears!

JK

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