Monday, July 11, 2005

Expectations Versus Facts...Q2 earnings

This morning, a Vice President from Thomson Financial (sorry, never good at remember names) was interviewed by CNBC and was asked about Q2 earnings. Interestingly, he mentioned that although, earnings growth is estimated to be +7% this quarter, he expects that the aggregate earnings growth would beat and most likely come in at around 10-15%, The main reason he gave was that preaanouncements have been running low till now, as result, he sees upside to the estimates. I didn't think much until I saw this : Preaanouncements
is worst since Q1 2003
.
Why the discrepancy, especially since both sources appear to be from Thomson Financials. Are they so optimistic that they chose to believe the positive data rather the the others. Well we'll find out soon enough heading into this earnings seasons.

What unsettles me with this interview was the manner this information was disseminated. It was presented as a matter of factly as facts rather opinions and why would USA article contradict this gentleman's preaanouncement data? Was he too bullish to see it and why didn't he disclose it on TV while he was making his predictions of companies beating expectations?

Is there too much to ask for financial journalist to separate facts from fictions?

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