Zacks Earnings Trends Highlights: Apple, Google and Citigroup

        Zacks Earnings Trends Highlights: Apple, Google and Citigroup

PR Newswire

CHICAGO, Jan. 25, 2013

CHICAGO, Jan. 25, 2013 /PRNewswire/ --Zacks Director of Research Sheraz Mian
says, "Contrary to fears coming into the fourth quarter earnings season, the
earnings reports have actually been quite decent."


A Decent Earnings Season Thus Far

Contrary to fears coming into the fourth quarter earnings season, the earnings
reports have actually been quite decent. They are not great, but they are not
awful either, notwithstanding the strong negative reaction to Apple's
(Nasdaq:AAPL) report.

Not only are positive surprises at levels better than the previous quarter and
comparable to the last many, but neither are we getting much negative guidance
from management teams. One could discount the positive surprises as largely a
function of lowered expectation, which had sharply come down in the run up to
the start of the earnings season. But the absence of negative guidance has to
count as a net positive in an otherwise no-growth earnings environment.

Total earnings for the 136 S&P 500 companies that have already reported
results are up +1% from the same period last year, with 62.5% of the companies
beating expectations with a median surprise of +2.4%. Revenues are up +5.5%,
with 52.9% of the companies beating top-line expectations and a median revenue
surprise of +0.6%. Most of that revenue growth is coming from a handful Tech
and Finance companies, including Apple, Google (Nasdaq:GOOG) and Citigroup

Combining the reports that have come out with the ones still to come, the
composite fourth quarter earnings growth rate is essentially flat (up only
+0.1%). The actual dollar amount of fourth quarter earnings is the lowest
quarterly total in 2012 (see Table 5). But the expectation is for earnings
growth to resume from the second quarter of 2013 and increase materially in
the back half of the year. We have started expectations for 2013 come down a
bit, but there is likely much more room to go.

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Contact: Sheraz Mian
Phone: 312-265-9211

SOURCE Zacks Investment Research, Inc.

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