Morgan Stanley Research: QE Dec-10 Earnings Season Thus Far Research

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Quick Comment: QE Dec-10 Earnings 
Season Thus Far Research

India Strategy
• Revenue and earnings growth remain strong for the MS coverage
universe at 22% and 30% YoY growth, respectively. Thus far, 18
Sensex companies have reported an aggregate of 33% growth in
earnings.
• Around 65% of the companies (42 out of the 66 companies) have
beaten MS analyst expectations. Aggregate earnings are ahead of
expectations by 7ppt.
• About three-quarters of the companies (16 out of 20) in the
Financials sector and around two-thirds of the companies (5 out of
8) in Technology sector have beaten MS analysts’ expectations
while one-half of the companies in Consumer discretionary and
materials space have missed.
• Margin compression is evident in seven out of 10 sectors.
• Over the past week, Consumer Staples and Industrials saw the most
positive earnings growth revision while Materials and Healthcare
saw the most negative earnings growth revision for F2011.
• Some 912 companies in the broader market have reported earnings
growth (of 28% YoY) more or less in line with the narrow market.