Five Things You Need To Know This Earnings Season

With Q2 ’14 earnings season in full swing, the team at Alpha Now have been working around the clock to bring you insight on company expectations and the winners or indeed the losers of the quarter. Here are five things you don’t want to miss:

1. Earnings are strong this quarter.

Well, that’s not including Citigroup who cast a shadow on earnings with their recent government settlement. Without Citigroup there’d be 9.9% growth, a stark contrast from what analysts originally thought growth would be at the beginning of earnings season.

2. Best revenue growth in two years.

In Q1 ’12 revenue growth was at 5.0% and it has been a downhill slope up until now. This quarter at 4.4% it looks like revenue growth may finally be making a comeback.

3. 67% of companies beat their estimates.

One by one companies reported their earnings and shockingly 67% defied analyst’s odds. One of the biggest positive surprises to note was Gilead Sciences with a growth rate of almost 400%! This year they launched a new product costing a whopping $84k, but is seems the price is working in their favor.

4. Financials are in last place.

This quarter financials have been nothing short of disappointing, particularly diversified banks. Big banks suffered and the ones even beyond Citigroup’s disappointment, notable banks such as Bank of America and JPMorgan Chase still reported large earnings declines.

5. Brighter days ahead.

Analysts are more optimistic about next quarter, estimating that there will be 9.3% growth – only time will tell if they are right or not.

Look out for more earnings updates next week. You can keep up –to-date with the latest earnings news by reading our exclusive Alpha Now reports or bookmarking our Earnings Update page.

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