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Thomson Reuters Senior Research Analyst Sri Raman on the outlook for the second-quarter earnings season.
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Earnings season getting under way on Monday without -- reporting after the bell estimates have been falling over the past few weeks with -- earnings expected to grow.
Five point 8% it's a lot lower than the last -- in fact it's the weakest quarter since the financial crisis in 2008.
We're dying to know what sectors -- names could see surprises to both the upside and the downside.
Street Robin is the senior research analyst at Thomson Reuters last earning season he correctly predicted the directional surprise.
-- -- 100% of the companies you analyze how many did you analysts.
Are we had ten company S companies got on exercise reaches five and the upside five and downside.
I'll be usually a pretty accurate but you've been dissed by our standards is fantastic group pretty -- with that.
Are -- to -- -- the companies cooperated with us something about the way that you do it what's your formula -- asking you to give up your state secret you have really we actually have the Smart estimate which basically takes a look at.
The best analyst and in the latest estimates and it puts -- read on them and you can compare that the consensus estimate which is the most that the -- -- standard on the street.
-- the Smart estimate is above the consensus that's a strong indication that.
Estimates are probably gonna get these little more.
And the -- gonna beat estimates and it Vivendi announced earnings OK on the -- on the downside again that's going to be the same thing -- that I mentioned that in fact this this earnings he's going to be a lot less than the last quarter however.
It could be even worse if you take out one stock.
And Bank of America and explain why that's so it's a Bank of America had a huge one time would get charged lost -- -- last -- at the same quarter.
And -- so the -- -- fairly -- fairly easy for the financials so bottom line if you take Bank of America out.
What would the actual earnings season -- fall from five point 8% two point 7%.
Hi very close to zero growth such drop off we've had a couple of record earnings seasons we have and the comparisons a pretty -- up pretty strong last year the second headquarters are really good.
That explains why they've got tough comparisons but this quarter companies are are struggling and various sectors like -- use energy utilities.
They -- -- -- -- drops let's let's start on the plus side the -- which include wants market's been beaten down almost to death but it's it's rising like the Phoenix yet are you referring to Netflix reality Netflix selling Netflix has -- was -- 300 dollars it's not so long ago.
And then of -- that was used debacle in.
The need to meant -- -- splitting the business -- up the stock got hammered but now we're starting to see on industry -- -- estimates again that's a good sign.
Define the analysts -- stopped saying hey this it Congo where -- with that it is now.
-- estimates climb higher look for the stock price stores that group reflect that.
The second -- that you're anticipating has Yahoo! just at a time when it too was in the news why do you anticipate that this company able to better than expected so we have a fight started board -- -- estimate on Yahoo! which is a -- start analyst that's been created by star mine from being captured in the cost.
-- this analyst has investment that's far above the consensus you want to listen to this kind of he's been right so many times in the profits.
And if you tell not to pay more attention to his estimate and that's exactly with the Smart estimate does and it's -- isn't a concern -- Hurry things along quick mrs.
You would think that the oil sector is missing and indeed Chevron is among them it is and -- spent a lot of money drilling.
And that's.
That's a huge capex spend which is expected to continue this quarter.
Look for that capex to bring -- Fortress Investment Group there's another one that ticker symbol a fight -- what's the problem here so this several fronts one is of course the markets aren't the strongest equity markets and beyond the alternative investment market.
They had a commodities fund to shut -- down in me.
That's that's about trying for that group stress sign of stress and they're -- Look for those earnings to miss the smartest man has been with a consensus that's usually a good indicator that actually going to be -- -- even more -- -- and from Thomson Reuters by the -- -- has a lot more misses and hits you can see them all if you -- -- our FaceBook page FaceBook.
Dot com slash after the bell.
To see all of his hits and misses that's where you go to get -- and again this guy's been right a 100% of the time -- -- -- last quarter.
Hopefully will be this -- come back again we look.
