For Immediate Release
Chicago, IL - May 7, 2012 - Zacks.com releases the list of
companies likely to issue earnings surprises. This week's list
). To see more earnings analysis, visit
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1Q Earnings Begin to Wind Down
Going strictly by the earnings and economic calendars, I would
expect this to be a fairly quiet week. First quarter earnings
season is winding down, with about 84% of the S&P 500
constituents already out with their results.
On the economic front, Thursday's Jobless Claims will likely be the
most significant. The other major releases this week -- Trade
Deficit and wholesale inflation (PPI) -- are just a tad below the
It may be quiet this side of the Atlantic, but Europe will likely
be in the news. We will know the results of the weekend
presidential election in which the socialist Francois Hollande is
favored to unseat the incumbent conservative Nikolas Sarkozy. Mr.
Sarkozy shared the intellectual policy prescription of Germany's
Angela Merkel for the region's fiscal issues to the extent that the
two would at times be known as 'Merkozy.' Given the different
intellectual orientation of Mr. Hollande, the markets will likely
perceive his victory as the start of a relatively rocky phase in
The bulk of the first quarter earnings season is over, but a lot
companies have still come out with results. As of Friday May 4th,
we have results from a total of 422 S&P 500 companies, or a
little over 84% of the total. We will get results from 655
companies this week, including an additional 32 S&P 500
Overall, first quarter earnings season has turned out to be much
stronger relative to pre-season expectations. For the 84% of the
companies that have already reported, total earnings growth is
tracking 6.5%, with roughly 67% coming out with positive earnings
surprises. Most of the growth is coming through revenue gains, with
aggregate margins essentially flat from the year-earlier level.
This is a far cry from pre-season expectations when aggregate
earnings were expected to be down modestly from the year-earlier
That said, the aggregate growth rate looks a lot less impressive
) results are excluded. Stripping out Apple, the year-over-year
growth rate for the other 421 companies drops from 6.5% to 3.8%.
Keep in mind, however, that even this ex-Apple growth rate
significantly better than pre-season expectations of a roughly 2%
Monday - 5/7
- There is nothing significant on the economic calendar, but
the markets will likely react to the weekend presidential
election in France where the incumbent is struggling to hold on
to his job.
- Of the earnings releases on Monday,
) reports before markets open.
Tuesday - 5/8
- There is nothing material on the economic docket today.
- On the earnings front,
) will be releasing results after the close.
Wednesday - 5/9
- Nothing material on the economic calendar today.
- On the earnings front, we will see earnings from
) after the closing bell.
Thursday - 5/10
- We will get another look at the labor market through the
weekly Jobless Claims data in the morning. We will also get the
March Trade Deficit numbers before the markets open.
- The weaker-than-expected April non-farm payroll report has
put the spotlight on the U.S. labor market. It will be
interesting to see if the weekly initial claims data, which fell
sharply last week, will sustain that trend this week.
) will report after the close.
Sheraz Mian is the Director of Research for Zacks.com.
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Contact: Sheraz Mian
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