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 (TSN), Chesapeake Energy (CHK), Disney (DIS), Priceline (PCLN) and Expedia (EXPE).
To see more earnings analysis, visit http://at.zacks.com/?id=3207.
Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=3567.
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 (TSN) and Chesapeake Energy (CHK).
Tuesday - 8/07
- Nothing major on the economic calendar.
- We have more than 200 earnings reports coming out today, with Disney (DIS) and Priceline (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 (EXPE) strong Q2 results bode well for Priceline.
Sheraz Mian is the Director of Research for Zacks.com.
About the Zacks Rank
Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +28%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have significantly underperformed the S&P 500 (+3% versus +10%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=4988.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=3568.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact: Sheraz Mian
More From Zacks.com