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