90 Day Treadmill aka Earnings Season Report Card

With the end of earnings season nearing, we wanted to look back and see what this quarter’s report card looked like. For those new readers, we call earnings season the 90 day treadmill as the demands of Wall Street are stringent and occur every 90 days. Each quarter is followed quickly by another in treadmill like form. Every public company who participates in this treadmill, willingly accepted the challenge when they went public.

Looking back to our April 13th, post here are the expectations and what actually happened from Thomson Reuters:

Top 3 Expected Versus Actual Growth Sectors:

  • Industrials  10.8% Actual + 6.9%
  • Financials  8% Actual + 4.7%
  • Technology  7.8% Actual + 9.6%

Bottom 3 Expectations:

  • Telcom  -14.4% Actual + 13.1% (The worst expected, was the best actual; remember estimates are just that)
  • Materials -12.9% Actual + 7.3%
  • Utilities  -9.3% Actual – 2.1%

With most earnings reported, the growth of 7.6% was much greater than the 2% expected as we entered treadmill season. Accordingly, the S&P current is trading at just over 14, near the long-term average of 15, however above a slower growing economic multiple.

Have a Great start to your week!




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