Earnings Aren't Bad, But Guidance is - Video Blog

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Relative to the first three quarters of 2013, earnings in the fourth quarter are showing improvement in terms of growth as well as beat ratios. Part of the stronger looking Q4 earnings growth is due to easy comparisons for a handful of companies, notably Verizon (VZ) , Bank of America (BAC) and Travelers (TRV) .

But even after excluding these companies from the aggregate numbers, Q4 earnings growth would still be the highest quarterly growth pace of the year.

More than offsetting these positives is the persistent negative guidance from management teams. As we saw from Whole Foods (WFM) on Wednesday, Deere (DE) a few days back and Boeing (BA) earlier in the reporting cycle, companies are still overwhelmingly guiding lower, prompting estimates for the current period to come down.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Earnings

Referenced Stocks: VZ , BAC , TRV , WFM , DE

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