Biggest EPS Miss Since Lehman, And This Time It’s Not The Tsunami’s Fault


The S&P 500 posts the biggest earnings Earnings Per Share miss since the infamous Lehman Brothers incident prior to the 2008 Financial Crash.

Yes, we know it doesn’t matter because Ben & Mario have got our backs at whatever multiple is required to levitate the economy market, but as Citi’s credit desk points out; despite the constant chatter about EPS beats (despite top-line misses), the trick is that analysts have been dragging down expectations since the earnings-cycle began and so judging ‘misses’ must be done against a ‘frozen’ pre-earnings number. If we do this ‘fair’ approach to considering expectations, the percentage miss in the S&P 500′s EPS for Q2 2012 is as bad as the Q2/Q3 2011 Tsunami-driven miss – and the worst we have seen since Lehman Brothers shuffled off this mortal coil. So as usual, be careful what truth you believe and consider just how much more ‘hope’ is now in this market given this reality.

Categories: ECONOMY

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