For Immediate Release
Chicago, IL - March 17, 2015 - Zacks.com releases the list of companies likely to issue earnings surprises. This week's list includes Alcoa ( AA - Free Report ), Oracle ( ORCL - Free Report ) and Adobe ( ADBE - Free Report ).
To see more earnings analysis, visit http://at.zacks.com/?id=3207 .
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Q1 Earnings Season Getting Underway
We are almost three weeks away from Alcoa's ( AA - Free Report ) earnings release on April 8th, but the 2015 Q1 earnings season will get underway this week with the Oracle ( ORCL - Free Report ) and Adobe ( ADBE - Free Report ) reports after the close on Tuesday. All of these early reporters have fiscal quarters ending in February, which we count as part of our 2015 Q1 tally.
In total, we will get results from more than 100 companies this week, including 9 S&P 500 members. But as you can see in the chart below of weekly reporting calendar for companies in the S&P 500 index, we will have to wait another 4 weeks for the Q1 reporting cycle to really ramp up.
Estimates have come down sharply over the last few months, with total earnings for the quarter now expected to be down -4.9% from the same period last year, down from expectations of positive +4.9% growth in mid-December and +10.8% in early October.
As was the case in Q4, Energy is the biggest driver of this negative revisions trend. While total Q1 earnings for the Energy sector were expected to be down (only) -35.6% in mid-December, they are now expected to be down -63.3% year over year. But it's not all due to the Energy sector, as estimates beyond the Energy sector have been coming down as well.
This pronounced downshift in estimates has prompted some on Wall Street to start claiming that the revisions trend may have a gone bit too much; meaning that estimates have likely become too low. Hard to find a basis for such a claim in real time, particularly given the global growth woes and still-high U.S dollar. But we will find soon enough as actual Q1 results start coming in.
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