Earnings Picture Brightens
We have now seen first-quarter earnings from about 200 of the S&P 500 companies. Thus far, over 70% of companies have reported earnings which have beaten analysts expectations, which expectations had been lowered after the harsh winter season experienced here in the US. Analysts now anticipate that S&P 500 earnings gained about 1.0% last quarter while revenues rose about 2.5%; both estimates are down from one month ago.
The forecast for the second quarter looks better. As reported in the attached article, "second quarter outlooks for S&P 500 companies so far are much more optimistic than the last two quarters." These expectations, combined with an increase in durable goods last month and a slowly improving US labor market, have increased optimism that companies are returning to form after the winter related slowdown seen in the first quarter.
www.foxbusiness.com/industries/2014/04/25/us-second-quarter-profit-outlook-brightens-as-clouds-lift/
