Friday, August 12, 2011

Strength in Corporate Earnings Continues

As we mentioned earlier in the week, the market's recent turmoil hasn't caused some of the bigger financial institutions to back off from fairly rosy predictions about the stock market. The reason for this optimism is that American corporations remain financially solid.

According to data compiled by Bloomberg, per-share earnings among the S&P 500 companies that have released quarterly results in the past month have increased by 18 percent. Sales for that same time period are up 13 percent. About three-quarters of the companies have topped the consensus analysts' profit estimate, whereas that number is customarily more like 60 percent.

While the stock market shoots up and down on a daily basis, these are the figures that are forming the long-term backbone of our economy. It's good to see those numbers continue to be strong.

No comments:

Post a Comment