So far, So good . . . the earnings reports for Q1 are beating earnings and revenue estimates by a wide margin.

While only 245 companies have reported earnings so far, 72% of those that have reported have beaten earnings estimates.  That is an outstanding beat rate.  70% of them have beaten the revenue estimates. The earnings beat rate at a similar point in time following Q4 was only 58.5%.  The charts below come courtesy of Bespoke Investment Group (here).  The beat rate is of course a function of rising revenue and earnings and analyst estimates that were too conservative.  Either way- the most powerful three words in the investment world is “better than expected”.  Next week is jammed with earnings reports.  Over half of the S&P 500 companies will have reported.  If the beat rates continue we should expect more market upside ahead.  That said, the strong market performance in Q1 still supports the fast money habit of “sell in May and go away”.  Jeb Terry, Sr. April 22, 2012

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

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