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Reporting Highlights Summary

Reporting period highlights summary thus far:

·        Economic growth across the globe has been solid, and there is a high correlation between GDP growth and corporate revenue growth.  While U.S.-oriented companies are meeting expectations, companies with international exposure are beating expectations.

·        The positive earnings surprise overall stands at roughly 6%, and 70% of companies are beating estimates.  The average over the past few years is 68% of companies beating by 4.7% on average.

·        Expectations are for revenues, earnings, and EPS growth of 5.5%, 7.9%, and 9.1%, respectively. EPS is on pace for 9.7%, assuming the current beat rate for the remainder of the season.  This is down from the 2Q final growth rate of 12%.

·        Companies beating on both the top- and bottom-lines have outperformed by 0.9%, while those missing on both have lagged by -2.0%.  This compares to +2% and -3% historically.  There have been several stocks down double-digit on disappointing earnings.

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