■Reports rolling in fast: 159, or 31.8%, of S&P 500 firms have reported.

■Great start with a median surprise of 5.88%, and a 7.58 surprise ratio. Total of 128 positive surprises and just 17 disappointments. Positive year-over-year growth for 130, falling EPS for 28 firms, a 3.81 ratio. Total net income reported up 33.8%.
Starkt!!!
■Sales Surprise ratio at 1.78, median surprise 0.64%, 54.7% of all firms do better than expected on top line. Revenue growth healthy at 5.78%. Excluding financials, revenue growth at 10.2%.
Starkt
■Total net income (for those yet to report) for the S&P 500 in the third quarter of 2010 is expected to rise 13.8% over third quarter of 2009 levels — a slowdown from the 37.4% growth those same firms had in the second quarter. A rebound to 15.8% growth expected in the fourth quarter.
Njae
■Net margins (among the 341 yet to report) expected to rise to 7.52% from 6.92% a year ago. Excluding financials, net margins expected to rise from 6.88% last year to 7.11% in the third quarter.
cost cutting
■Full-year total earnings for the S&P 500 expected to jump 42.5% in 2010, 11.0% further in 2011. Total revenues for the S&P 500 expected to rise 4.93% in 2010, 6.05% in 2011. Excluding financials, revenue growth of 8.38% expected in 2010, 7.01% in 2011.
11% earnuings och 7% revs är inte mycket!!!
■Autos, Finance, Basic Materials and Energy expected to be earnings growth leaders in 2010. Construction expected to move from the red to the black. No sector expected to see earnings decline in 2010.
■Net Margins marching higher, from 5.90% in 2008 to 6.42% in 2009 to 8.78% expected for 2010, 9.12% expected for 2011 — a major source of earnings growth. Net margins ex-financials 7.81% in 2008, 7.13% in 2009, 8.14% expected for 2010, 8.50% in 2011.
Cost cutting eller operational leverage?
■Revisions ratio for full S&P 500 at 1.85 for 2010, at 1.21 for 2011, an improvement from last week. Ratio of firms with rising to falling mean estimates at 1.70 for 2010, 1.11 for 2011. Total revisions activity picking up, for 2010, all from estimate increases.
över 1 är starkt när vissa tror att vinsterna ska kapsejsa nästa år!!!
■S&P 500 earned $546.2 billion in 2009, expected to earn $778.0 billion in 2010, $863.4 billion in 2011.

■S&P 500 earned $57.57 in 2009: $81.96 in 2010 and $90.78 in 2011 expected.

■Bottom Up puts P/E’s at 20.5x for 2009, 14.4x for 2010, and 13.0x for 2011.
Det är inte PE 14,4 och 13,0 som är intressant utan PBV och ROE samt COE… ser billigt ut!
■Top Down estimates: $79.90 for 2010, $92.27 for 2011.