Tuesday, October 9, 2012

S&P 500 Revenues & Earnings

Industry analysts raised their S&P 500 revenues estimates at the end of September for both 2012 and 2013. Their estimate for next year peaked at $1161 per share during the week of April 26, falling to a low of $1124 during the week of August 16. It then stabilized over the past six weeks around that low, and hooked back up to $1131 at the end of September. Could it be that S&P 500 revenues, with more than half coming from abroad, are bottoming despite the IMF’s increasing caution about the outlook for the global economy?

Furthermore, S&P 500 forward earnings rose to a new record high last week of $112.82. In recent weeks, industry analysts continued to lower their Q4-2012 estimate, but at a slower pace, and it also might have bottomed last week. They’ve recently stopped lowering their estimates for all four quarters of next year.

Today's Morning Briefing: Global Bust, Boom, or Blah? (1) The latest gloomy memo from the IMF. (2) Are industry analysts turning more upbeat? (3) Questioning the pessimism about China. (4) Are China plays bottoming? (5) Intermodal railcar loadings are chugging along. (6) Second Recovery scenario for the US. (7) Mortgage refis are up. (8) Less imbalance in euro area’s TARGET2. (9) The DAX is on a tear. (10) China’s woes trigger more monetary easing. (More for subscribers.)

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