Earnings Are Up and Analysts Are Shocked: Ritholtz Chart
The second-quarter earnings season is coming to an end so I wanted to share a chart that took me by surprise: bottom-up earnings revisions.
Bank of America Merrill Lynch reports that more than 450 companies -- 93 percent of the Standard & Poor's 500 Index -- have reported earnings. Second-quarter earnings rose 10 percent year-over-year, the best quarterly growth we have seen since the third quarter of 2011.
You can see this reflected in the chart above showing earnings-per-share revisions.
How much of this is a holdover from the first quarter's horrific weather is anyone's guess. But I was astounded to see so many analysts caught off guard by the numbers.
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Barry L Ritholtz at email@example.com