Some highlights from the Q3 reporting season so far:
- 2.3% blended EPS growth rate.
- 2% blended revenue growth rate.
- 75% beat rate (shocker).
- 52% revenue beat rate.
- Consumer discretionary is leading in both EPS growth and revenue (5.4%)
- 84% of companies reporting guidance have reported negative guidance.
- 2014 EPS growth is estimated at 8.5%.
- 2014 revenue growth is estimated at 0.6%.
Nothing to write home about. My guess is for profits more in-line with muddle through in the coming year. It’s not good, but it’s not bad and if animal spirits continue to drive the markets then multiple expansion leads to higher stock prices….
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.