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Earnings Season to Date

02/13/2012

As of the close of business Friday, February 10, 2012…
 
 
S&P 500® INDEX (SPX) – 1342.64; year to date +6.7% (Figure 1.1)
 
•         331 companies have reported to date (66% of the Index)
•         The majority of firms yet to report come from consumer discretionary and utilities 
 
EPS
 
•         Current quarter EPS growth stands at 3.9%

o   Prior 4-quarter average was 14.66%

    • Technology experienced EPS growth of 19.91%
    • Industrials experienced EPS growth of 14.40%
    • Financials experienced EPS growth of -17.10%
       
  • Current quarter 70% of SPX reported have an absolute positive EPS surprise
    o   Prior 4-quarter average was 73%
  •  Current quarter 28.7% of SPX reported have an absolute negative EPS surprise
    o   Prior 4-quarter average was 25.5% 
     
    Sales
     
    • Current quarter sales growth stands at 6.97%

      o   Prior 4-quarter average was 10.64%

        • Technology experienced sales growth of 14.93%
        • Energy experienced sales growth of 12.75%
        • Financials experienced sales growth of -2.90%
                 
    • Current quarter 56.2% of SPX reported have a positive sales surprise
      o   Prior 4-quarter average was 60.3%
       
    • Current Quarter 43.5% of SPX reported have a Negative Sales surprise
      o   Prior 4-quarter average was 38.3%
       
       

Earnings Calendar for the Week Ahead – Monday, February 13 to Friday, February 17
 
SPX companies whose earnings I view as significant:
 
            Monday       Masco (MAS)
 
            Tuesday       BorgWarner (BWA); Avon (AVP); Goodyear Tire (GT); Watson Pharmaceuticals (WPI); Host Hotels (HST) 
 
            Wednesday Vulcan Materials (VMC); Dean Foods (DF); Devon Energy (DVN); Deere (DE); Marriot (MAR); CBS Corp (CBS);
                                 Abercrombie & Fitch (ANF); Nvidia (NVDA); Netapp (NTAP); CF Industries (CF); Cliffs Nat Resources (CLF)
 
            Thursday     Directv (DTV); Waste Management (WM); PG&E Corp. (PCG); Duke Energy (DUK); Apache (APA);
                                 Nordstrom (JWN); JM Smuckers (SJM); VF Corp. (VFC); Molson Coors (TAP); EOG Resources (EOG)
                                 Applied Materials (AMAT)
 
            Friday           HJ Heinz (HNZ); Campbell Soup (CPB)
 
            
 
S&P 500 Index (SPX) – February 14, 2011 to February 10, 2012


 
Source: Bloomberg

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.