Friday, January 8, 2010

Weekly S&P Earnings Packet January 08, 2010

Weekly Wrap
Revisions and Momentum:
The earnings revision factor (ERF) fell again this week and seems to be rolling over from record highs. The S&P 500 FY2 ERF now stands at 25.4%, down from 25.9% a week ago and down from 27.8% a month ago. Ex-financials ERF’s fell modestly week/week. The sectors that saw the largest improvements in ERF this week were Telecom (from -12.0% to -10.5%) and Industrials (from 15.6% to 16.2%). Among industry groups, Autos (from 13.2% to 22.6%), Banks (from 3.2% to 5.0%), and Telecom (from -12.0% to -10.5%) saw the largest increase.

The one-week earnings revision (change in NTM earnings which, unlike the ERF, takes into account the magnitude of earnings revisions) rose 1.8% week/week. Materials, Financials and Energy ranked the highest, while Utilities, Telecom, and Consumer Staples ranked the worst on NTM earnings revision.

The one-week earnings momentum (change in LTM earnings) rose 1.0%, with the one-month earnings momentum improving from -2.1% to -0.7% this week. This week Energy and Materials saw the biggest improvement in their earnings momentum, while Consumer Discretionary and Financials were ranked worst with the largest decreases over the last week.

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