Sector Earnings Expectations

The guidance numbers from last earnings season were very positive.  The spread between the number of companies raising guidance versus lowering guidance came in at one of the highest levels in more than a decade.  When guidance is strong in any given earnings season, it means expectations for the following earnings season will be high.  Below we highlight the guidance breakdown from last earnings season by sector.  As shown, the Technology sector had by far the most positive guidance numbers.  Twenty-one percent of companies in the sector raised guidance last quarter, while just 5% lowered guidance.  Health Care and Consumer Discretionary were the only two other sectors to see more than 10% of companies raise guidance.  Energy and Financials had some of the worst guidance numbers.  Heading into this earnings season, Technology will have to live up to some lofty expectations, while upside surprises will likely be easier to come by in the Energy and Financial sectors.

Below we provide a complimentary Bespoke Premium report that highlights the final Q4 '09 earnings season stats.  Throughout the upcoming earnings season, we keep Premium subscribers up-to-date on all of the earnings season trends throughout the entire reporting period.  Click here to subscribe today.