Nov. 7 - Earnings season continues with 62.6 percent of S&P 500 companies reporting so far posting revenues below estimates, which is a reverse of the historical norm. Conway G. Gittens reports.
Our daily digit today is 62.6 percent. This is how big of a chunk the S&P 500 companies that reported revenues did so below analyst expectations for the third quarter. Greg Harrison, corporate earnings analysts at Thomson Reuters, says this is the weakest earnings season in three years. SOUNDBITE: GREG HARRISON, CORPORATE EARNINGS RESEARCH ANALYST, THOMSON REUTERS, (ENGLISH) SAYING: "Now, this is much higher than the typical number of companies that miss, which is generally 38%. Now, one of the factors that is leading to these low sales is the situation in Europe. Companies that have done business in Europe are having a difficult time generating sales there and that's affecting the top line." When it comes to the bottom line, three-quarters of companies reporting so-far either hit or beat earnings forecasts, but in many cases that profit growth came from internal reorganization, rather than actual sales.