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| Subject: First-quarter earnings: They won't be pretty Mon Apr 09, 2012 5:30 am | |
| While the stock market put up its best first-quarter performance in over a decade, the first three months of 2012 weren't as hot for Corporate America.
Analysts are forecasting a 0.1% drop in first-quarter earnings for companies in the S&P 500 (SPX), compared with a year earlier, according to FactSet. While that's not exactly a major decline, it would mark the end of a nine-quarter winning streak.
And excluding Apple (AAPL, Fortune 500)'s always-impressive financial performance, the outlook is even more downbeat, with S&P 500 earnings on track for a 1.6% decline.
The materials sector is expected to post the worst performance, with earnings falling 14.5%. The sector will be in the spotlight Tuesday, when aluminum giant Alcoa (AA, Fortune 500) reports results, marking the unofficial start of the quarterly earnings season.
Google (GOOG, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) are also on tap to report this week.
One reason earnings growth is beginning to stagnate is sheer math.
When company balance sheets were recovering from the depths of the recession, earnings were growing by double-digits. But almost three years into the recovery, year-over-year improvements are more difficult to deliver.
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