Wal Mart closed out the unofficial end to earnings season after reporting last Tuesday. In our analysis of S&P 500 stocks, 73% of companies beat Reuters estimates while 16% missed estimates for the second quarter. While the percentage of companies that beat was high, the stocks reacted poorly when compared to prior quarters, going up an average of 82 bps on the day (we used the next-day change if the company reports after the close). Companies that missed suffered more than usual as well, going down an average 3.24% on the day of earnings.
Great data, would it be possible to get the same for nasdaq?
Posted by: timothy | August 25, 2006 at 05:14 AM
Does your analysis take into consideration any statements by the companies regarding future earnings expectations? For example, a company may beat their expected EPS but make a statement reducing the EPS for the current or following quarter...Just wondering. Great work!!!
Posted by: Vid | August 25, 2006 at 12:39 PM