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Wednesday
Apr202011

Earnings "Beat Rate" Not Looking So Great...So Far

It's still early yet, but the earnings "beat rate" -- the percentage of companies beating earnings estimates -- this earnings season is not looking so great.  As shown in the first chart below, 64% of US companies have beaten earnings estimates so far this earnings season.  A "beat rate" of 64% would be the weakest reading since the start of the bull market back in April 2009.  Again, it's still early, but unfortunately the "beat rate" has historically started out high and drifted lower as earnings season progresses.  If that's the case this earnings season, the "beat rate" could have a five handle. 

 

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Reader Comments (1)

Hi there, thanks for this - I was just wondering where you got the data on the earnings beats from and whether you are making any adjustments, i.e. screening out large beats and misses? Also, is this EPS or EBIT that you refer to? The reason I ask is that Bloomberg data says that about 74% of S&P companies that have reported so far have beaten estimates. Bloomberg data is notoriously inaccurate but I was just wondering if there was anything obvious to account for the difference, as the discrepancy obviously is the difference between a quite good earnings season and the worst since we came out of the downturn, so it is a big difference. Many thanks and keep up the good work.

April 21, 2011 | Unregistered Commenterdarthtrader

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