Some interesting and informative data for long/short traders from a 13 February “Earnings Season Update” report compiled by BoA Merrill Lynch.
With 85% of companies reported:
- 61% have beaten on EPS
- 48% have beaten on sales
- 36% have done both
Those EPS beats are better than post-2000 average of 53% but the sales results are worse than their historical 56% level.
Perhaps most interesting were these 2 graphs:
Health Care and Tech have had most positive surprises with the opposite being the case for Staples, Telecom and Utilities.
Something to bear in mind when considering sentiment.