90 Day Treadmill AKA Earnings Begin

We coined the presenting of earnings each 90 days the “90 Day Treadmill” some years ago. While we like to see the earnings, many compromises occur with such “Short-tism” Wall Street puts on companies. Treadmill

Miss an 90 day checkup, frequently Wall Street Punishes the company way too much in many cases … Oh we digress…

Earnings Season Update

Here are the latest expectations from Factset:

Total Earnings are set to fall almost 10%, heavily influenced by Energy.

4-15-16 Earnings Exp - Factset

Sales- Revenue Expectations – Once again heavily influenced by Energy, but Sales are hard to come by in our current economy.

4-15-16 Revenue Exp - Factset

So earnings are weak, sales as well … A logical question would be – “Why are the capital markets hanging in so well ?”

Capital Markets Look ahead, and analysts are pretty high on the remainder of the year – meaning, they are expecting nice bounce back growth- Again from our friends at Factset

4-15-16 Earnings By Quarter to 1-17 - Factset

If managers are able to keep in line with expectations, all clear…if forecasts are weaker… expect more chopiness !

The great news is our digital forecasting diary has it recorded for review later in the year … when forecasts become reality!

Have a Happy Monday…sorry for being so heavy !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

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