THEME: Tom McManus Speaks
A Banc of America Securities report from Tom McManus this week notes the best of the earnings growth may be behind us. The securities firm's Cumulative Earnings Revisions Index for the second quarter is up 37 per cent, which is down from the 47 per cent level in the first quarter, "which may well have been the peak for the cycle of this earnings recovery".
Mr McManus said: "Stocks always seem to be better indicators of inflection points for earnings than the other way around." Wall Street's bearish response to earnings this season comes amid concerns about the less-than-stellar guidance. Another concern for Mr McManus is that "rising commodity prices are cropping up all over", and not all companies are able to pass along the higher costs.
A Banc of America Securities report from Tom McManus this week notes the best of the earnings growth may be behind us. The securities firm's Cumulative Earnings Revisions Index for the second quarter is up 37 per cent, which is down from the 47 per cent level in the first quarter, "which may well have been the peak for the cycle of this earnings recovery".
Mr McManus said: "Stocks always seem to be better indicators of inflection points for earnings than the other way around." Wall Street's bearish response to earnings this season comes amid concerns about the less-than-stellar guidance. Another concern for Mr McManus is that "rising commodity prices are cropping up all over", and not all companies are able to pass along the higher costs.
posted by Johnny @ 6:41 PM
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