24 April 2011

India Strategy Quick Comment: QE Mar-11 Earnings Season Thus Far: Morgan Stanley

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Still early days for earnings but as usual a strong start to the season
Initial signals indicate strong revenue and earnings growth and margin compression.
MS Coverage beat ratio @ 89%
Eight out of nine companies have beaten Morgan Stanley analyst expectations (see slide 3 for details). In our view, this will decline as the earnings season progresses but given the downgrades of the past quarter keep an eye on positive surprises.
Broad market earnings growth @ 24% YoY
70 companies in the broad market have reported revenue and earnings growth of 26% and 24% YoY, respectively.


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