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Tuesday
Jul272010

Guidance Remains Strong

So far this earnings season, 10% of US companies have raised guidance while 2.7% have lowered guidance.  Below is a chart showing the quarterly spread between the percentage of companies raising guidance and lowering guidance.  As shown, the 7.3 percentage point spread so far this quarter is higher than any other quarter since 2001.  There are still a significant amount of companies left to report this season, but for now, guidance numbers have been very strong.

Also worth noting is that this is the fifth straight quarter where positive guidance has outnumbered negative guidance.  The second longest streak (since 2001) of positive guidance spreads was three quarters from Q3 '03 to Q1 '04.

 

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