We want to analyze how equity analysts are adjusting their 2H 2012 and FY 2013 estimates now that the 2Q results for most of the Dow components are out. In our analysis below we show that 2H 2012 earnings estimates are coming down, indicating that the news from 2Q may be worse than expected. FY 2013 estimates are declining as well and may be prone to more reductions. Recent reductions may have already been priced into stock prices, but we are interested in seeing how long earnings estimates continue to be cut and when the trend reverses.
Tuesday, July 31, 2012
A Look At Changes In Forward EPS Estimates For The 22 Dow Jones Industrials Companies That Reported 2Q Results
Twenty two companies in the Dow Jones Industrials Average (DIA) reported 2Q 2012 earnings so far. Coming into earnings season many CEOs lowered their guidance and equity analysts reduced their estimates. This weakness showed up in the results as many companies reported revenue below (reduced) estimates, though often earnings were in-line or above (reduced) estimates.
We want to analyze how equity analysts are adjusting their 2H 2012 and FY 2013 estimates now that the 2Q results for most of the Dow components are out. In our analysis below we show that 2H 2012 earnings estimates are coming down, indicating that the news from 2Q may be worse than expected. FY 2013 estimates are declining as well and may be prone to more reductions. Recent reductions may have already been priced into stock prices, but we are interested in seeing how long earnings estimates continue to be cut and when the trend reverses.
We want to analyze how equity analysts are adjusting their 2H 2012 and FY 2013 estimates now that the 2Q results for most of the Dow components are out. In our analysis below we show that 2H 2012 earnings estimates are coming down, indicating that the news from 2Q may be worse than expected. FY 2013 estimates are declining as well and may be prone to more reductions. Recent reductions may have already been priced into stock prices, but we are interested in seeing how long earnings estimates continue to be cut and when the trend reverses.
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