For Immediate Release
Chicago, IL – August 6, 2012 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Tyson Foods (NYSE:TSN), Chesapeake Energy (NYSE:CHK), Disney (NYSE:DIS), Priceline (Nasdaq:PCLN) and Expedia (Nasdaq:EXPE).
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Final Phase of Q2 Earnings Season
We are in the final phase of the second quarter reporting season, with results from 82% of the companies in the S&P 500 already out. But we still have some ways to go before we can close the books on the quarter.
This week brings results from more than 600 companies, including 45 S&P 500 companies. By the end of the week, we will have results from 91% of the companies already known, getting us closer to the finish line.
Total earnings for the roughly 82% of companies in the S&P 500 that have already reported are up 5.1% from the same period last year, primarily due to easy comparisons for the large banks. This compares to 8.3% growth for these same companies in the first quarter, when banks didn’t have such easy comparisons.
Approximately 66% of all companies are coming out with positive earnings surprises, with a median surprise of 2.8%. In the first quarter, 66.8% of these same companies beat earnings expectations, with a median surprise of 3.6%. Excluding Finance, total earnings growth falls into the negative territory, down 1.3% from the same period last year, compared to positive 6.5% growth for the ex-Finance group in the first quarter.
Revenue growth has been notably weak this quarter, with only 38% of the companies coming out with positive revenue surprises. Even a number of these companies with positive surprises for the second quarter have guided towards softer revenue numbers in the coming quarters. This does not bode well for growth looking ahead.
The economic calendar is on the thin side, with most reports in the yawn-inducing category, such as Trade Deficit on Thursday and senior loan officer survey on Monday.
Monday - 8/06
- No major economic releases this morning.
- We have more than 100 earnings reports coming out today, including Tyson Foods (NYSE:TSN) and Chesapeake Energy (NYSE:CHK).
Tuesday - 8/07
- Nothing major on the economic calendar.
- We have more than 200 earnings reports coming out today, with Disney (NYSE:DIS) and Priceline (Nasdaq:PCLN) as the key reports after the close. Disney has good operating momentum at its back, with strength in its film and consumer products businesses particularly notable. Expedia’s (Nasdaq:EXPE) strong Q2 results bode well for Priceline.
Sheraz Mian is the Director of Research for Zacks.com.
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Contact: Sheraz Mian
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