India Strategy: QE Sep-10 Earnings Season thus Far
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Revenue and earnings growth seem to be strong. Expectedly, the broad market is ahead of the narrow market on both parameters.
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Surprise breadth is at its highest level since F1Q07. So far, 70% (23 out of 33 companies) of earnings reports have beaten MS analysts’ expectations (see slide 3 for the depth and breadth tracker).
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Margin contraction is evident in five out of nine sectors.
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Sensex companies rose 14% YoY (8 companies have reported, thus far), ahead of MS analyst expectations of 11% growth YoY.
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F2011 earnings revisions were positive for three out of 10 sectors over the past week with Healthcare leading the pack (see slide 4 for details).
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337 companies in the broad market have reported revenue and earnings growth of 22% and 27% YoY, respectively.
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