Thomson Reuters - Proprietary Research

Report Archive - Market Insight: Americas

Using Guidance to Predict Positive Surprises
Companies That Guide Estimates Higher Report Higher Actual Earnings
31-Mar-2010
This note updates two previous Thomson Reuters Proprietary Research group studies — re-examining the link between guidance and earnings performance. Analyzing data for S&P 500 companies since 2001 (the first full year of Regulation FD adoption), we explore trends in the number of guidance issuers, guidance issuers versus nonguidance issuers, and differences among guidance issuers.
Regions: United States
Authors: John Butters
Products: Thomson ONE Investment Management
Keywords: earnings, guidance, S&P 500
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Analysts Optimistic for 2010
Revenue and Earnings Growth Projected for the Year
23-Dec-2009
Based on their estimates for earnings, revenues and target prices for the S&P 500, analysts are optimistic in all three areas for 2010 relative to 2009. Analysts are predicting year-over-year growth in both earnings and revenues for 2010. And, based on their bottoms-up target price, analysts expect the price of the index to increase in 2010.
Regions: United States
Authors: John Butters
Products: Thomson ONE Investment Management
Keywords: earnings, guidance, revenues, S&P 500
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High-Tech Companies Set Higher Earnings Bar
Jump in Positive Guidance Indicative of Broader Upward Revisions
08-Dec-2009
The ratio (1.6) of negative-to-positive EPS preannouncements after nine weeks of Q4 2009 for S&P 500 companies is well below the average N/P ratio (2.6) of the past four quarters, due to a sharp increase in positive EPS preannouncements from Information Technology companies. This upsurge reflects three broader IT sector trends regarding 1) revenues, 2) estimate revisions, and 3) earnings performance for Q4 2009. Read on...
Regions: United States
Authors: John Butters
Products: Thomson ONE Investment Management
Keywords: earnings, guidance, revenues, S&P 500
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Cost Containment Will Not Last Forever
Will Revenues Rebound as Cost-Savings Opportunities Dwindle?
22-Sep-2009
Over the past year, companies have been accelerating cost savings, and this is appearing as improving earnings on the bottom line -- yet year-over-year top-line revenue growth has been in decline. If earnings growth continues to rely on cost containment, and that trend begins to fade (as we expect), then equity markets may face pressures ahead.
Regions: United States
Authors: David Dropsey
Products: ThomsonONE.com Investment Banking
Keywords: earnings, revenues, S&P 500
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Earnings Growth Rebound in Q4 2009
Unusually Low Q4 2008 Earnings Boost Possibly of 100% Growth
31-Jul-2009
Analysts are calling for earnings growth in the S&P 500 to rebound to 185% in Q4 2009. While at first glance such a high growth rate appears unrealistic, there are three contributing factors that support the argument that the final growth rate for the quarter could be over 100%: 1) an easy comparison to unusually low earnings in Q4 2008, 2) a slowdown in downward revisions to estimates, and 3) the current valuation of the S&P 500 is in line with the recent historical average.
Regions: United States
Authors: John Butters
Products: Thomson ONE Investment Management
Keywords: earnings, S&P 500
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Failure To Communicate
Fewer S&P 500 Firms Are Issuing Q1 EPS Guidance. Why An Eventual Uptick In Guidance Volume May Be Bullish
16-Apr-2009
Aggregate levels of company-issued quarterly EPS guidance have fallen substantially for first-quarter 2009, indicating that executives are still unsure about the future of their businesses. Until this phenomenon changes, equity markets will have to work with less transparency, data, and confidence.
Regions: United States
Authors: David Dropsey
Products: MarketQA
Keywords: guidance, S&P 500
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