Companies Boost Their Profit Promises

More US executives than ever are increasing earnings forecasts compared with those lowering them, a bullish sign for stocks. About 1.5 US companies boosted earnings estimates above analysts' forecasts for each one that cut projections in October. Companies are raising the outlook for US profits...

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Veröffentlicht in:Bloomberg businessweek (Online) 2010-11, p.1
Hauptverfasser: Thomasson, Lynn, Kisling, Whitney
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description More US executives than ever are increasing earnings forecasts compared with those lowering them, a bullish sign for stocks. About 1.5 US companies boosted earnings estimates above analysts' forecasts for each one that cut projections in October. Companies are raising the outlook for US profits at the same time the Federal Reserve is trying to boost the economy by purchasing an additional $600 billion in Treasuries. Standard & Poor's (S&P) 500 earnings since Oct 7 were 6.7% higher than analysts predicted, data through Nov 15 show. Stock prices may already reflect the outlook for higher corporate earnings. The price-earnings ratio for the companies in the S&P 500 climbed to 15.4 on Nov 5, based on reported profit from the past year, up from a 14-month low of 13.7 in July, according to data compiled by Bloomberg.
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source Elektronische Zeitschriftenbibliothek - Frei zugängliche E-Journals; Business Source Complete
subjects Earnings forecasting
Executives
Finance companies
Price earnings ratio
Profits
Stock prices
title Companies Boost Their Profit Promises
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