Perhaps we're still a bit early in announcing this -- then
again, our senior staff's earlier prediction seems to be bearing
out -- but 4th quarter earnings season looks like a big
improvement over the 3rd quarter. Earnings reports from
) both beat estimates this morning, following a positive surprise
) yesterday afternoon (though Intel guidance has sent the stock
down in the pre-market today).
APPLE INC (AAPL): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
MORGAN STANLEY (MS): Free Stock Analysis
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And while there still are plenty of issues to be wary of here in
early 2013 -- tax increases and spending cuts, both of which are
expected to curb economic growth -- generally speaking, things
are looking up. Traction in the housing market continues, retail
and auto sales are showing improvement, and overall bank earnings
thus far have further advanced the narrative that our harshest
economic ordeals are definitely in the rear view.
Only around a quarter of companies have yet reported, but we're
seeing roughly three positive surprises for each negative one.
This is actually historically typical, as companies have by now
mastered the art of under-promising and over-delivering earnings
and revenues. And if not for major downward guidance during the
course of Q4, we certainly would not be celebrating success the
way we are able to do this morning.
We may, in fact, be in a similar pattern to the last couple
years: hopeful, positive sentiment in the early months which
gives way to grimmer realities in the back-half. Perhaps we'll
break out of this pattern and see growth accelerate once economic
policies are decided and we can better navigate the playing
field, but this remains to be seen.
The markets will be closed for the Martin Luther King holiday on
Monday, but we here at Zacks will still be open to offer our
subscribers new methods, opportunities and recommendations to
improve their portfolios. And while plenty of big-name companies
have already put forth quarterly earnings numbers, next week we
really get hit with both barrels, including reports from
). Stay tuned!