2014 earnings are estimated to rise faster than 2012 and 2013. Estimates for “as reported” earnings for 2014 have been raised 13% this month – this is good.

We are moving into the heart of the 4Q 2013 earnings season and hence there will be a great deal of focus on whether companies beat estimates and raised guidance.  So far, the collective estimates for S&P 500 earnings have been raised 13% just since year end.  Operating earnings are presently estimated to rise 13% in 2014 – an acceleration over the estimated 10.5% increase in 2013 and the ~1% increase in 2012.  There will be the requisite amount of blather about the P/E ratio.  While it can be said it is not low, it cannot be said it is unusually high.  That is of course unless you torture the numbers enough and ignore the margin enriching impact of the increasing weight of software related businesses on aggregate corporate earnings.  Aberdeen focuses on very high growth technology companies.  Our portfolio’s weighted average estimated revenue growth for 2014 is 37.5%.  This compares to the 2.5% estimated topline growth for the S&P 500.  Jeb B. Terry, Sr. Jan. 20, 2014

SP 500 est 2014 eps 1-20-14

Aberdeen Investment Management – a guide service for micro-cap technology investment

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