As we approach ‘peak earnings reporting’ in the next two weeks, a quick glance at the state of the 65 companies of the S&P 500 that have reported so far may be useful. In yet another miracle of modern-day accounting, and just when you thought there was no more fat to cut, staff to lay-off, or Capex to cut, 73% of companies reporting have surprised positively on EPS while 65% have surprised negatively on Revenues. Industrials stand out in the liberal sprinkling of accounting fairy dust with 100% of the firms having missed top-line while 88% beat bottom-line. Is it any wonder that unemployment is rising once again and CapEx is falling?
65% Revenue misses versus 73% earnings beats…
The accounting fairies have been busy meeting and beating those expectations…
