Earnings Season Preview

posted 7/18/2011 in General

Market Commentary Highlights...


  • Investors have high expectations for earnings this year. However, having climbed all the way back to near the prior peak, earnings growth is slowing as businesses have stepped up spending on materials, capital, and labor.

  • For the second quarter of 2011, corporate profits are forecast to have grown by just 8% from a year ago, the smallest gain in two years. We expect downward guidance on earnings in the second half of 2011 from business leaders in the coming weeks as they report their second quarter earnings, potentially leading to downward revisions to 2011 earnings by analysts, and acting as a headwind for stocks as the earnings season matures.

  • During this earnings season, we are paying special attention to transitory impacts, business spending, and guidance from business leaders on the earnings outlook for coming quarters.

View the entire economic Commentary (pdf format)

Lincoln Savings Bank and LSB Financial are pleased to provide the above Economic Commentary for the week of June 27, 2011. The commentary is prepared by LPL FINANCIAL RESEARCH, the broker-dealer partner for Lincoln Savings Bank and LSB Financial. The above commentary and others like it can be found at www.mylsb.com/investments/commentary.aspx


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This information is being provided by Lincoln Savings Bank (LSB) / LSB Financial, an Iowa-based institution devoted to providing complete financial services since 1902. http://www.mylsb.com/
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