The stock market punished earnings misses more than it rewarded earnings beats

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First-quarter earnings season is virtually in the books. A look back shows stock-market investors were in a mood to punish shares of companies that...

Stock-market investors were in a rare mood during first-quarter earnings season, ready to deliver outsize punishment to shares of companies that disappointed on earnings while providing relatively meager rewards to companies that topped expectations.

Companies that topped earnings forecasts for the first quarter saw a 0.7% price rise over the four-day window, compared with the 1% gain seen on average over the past five years. He noted that 80% of S&P 500 companies have issued negative guidance for the second quarter, compared with the five-year average of 70%. When it comes to revisions of earnings estimates by industry analysts, the 1% aggregate decline in estimated earnings over the first month of the second quarter was smaller than the 5-year , 10-year , and 15-year average for the first month of a quarter.

With 92% of S&P 500 companies having reported results, first-quarter earnings season is largely in the books. Butters said 76% of those companies reported earnings that topped estimates, topping the five-year average of 72%. In aggregate, companies reported earnings 5.4% above estimates, which topped the five-year average of 4.8%.

 

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well, revenues earnings and guidances were revised down in previous Qs, so the companies that couldn't beat the revised earnings were in more trouble than the ones who beat them.

What the hell does John Malkovich have to do with it?

Like always

Is it ever otherwise? As they say, 'bulls take the stairs, bears take the elevator.'

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