Profits Look Great. Just Don't Look Too Far

Flash profits are strong, but analysts see a 2001 slowdown

A glance at corporate profits in the third quarter suggests that the good times just keep on rolling: After two consecutive quarters of 20%-plus growth, BUSINESS WEEK's flash profits survey of 114 bellwether companies showed another 25% surge. In many instances, results handily beat Wall Street's expectations. "For many companies, we're not talking about a penny [a share] better than expectations," notes I/B/E/S International Inc. equity strategist Joseph Kalinowski, who predicts a 17% profit gain for the Standard & Poor's 500-stock index in the third quarter.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.