Q2 earnings miss estimates by 4%

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fe Bureau: Mumbai, Oct 27 2012, 03:43 IST

September quarter corporate earnings so far have staged a negative surprise of about 4%, shows a compilation of latest quarterly numbers by Bloomberg. While the net earnings of the 270 companies that announced their results so far have managed to post a 36% y-o-y growth, a smaller subset shows that the earnings have failed to meet analyst estimates by a smaller margin.

Of the 66 companies for which actual numbers were compared with analyst estimates, as many as 36 — or 56% — posted negative earnings surprise. In the first four weeks of the June quarter earnings season, a similar study showed that 48% of the 48 set of companies posted a negative earnings surprise of 6.5%

“There has been a slight improvement in the negative surprises put forward by the September quarter earnings season compared to the previous quarters. However, this development is in line with broader expectations,” said an analyst.

Nalco, South Indian Bank, Adani Enterprise, Adani Power and Indian Overseas Bank were among the companies that posted the biggest negative surprise in net profit for three months to September compared to the same period last year.

Each of these companies failed to meet the analyst earnings estimates by 35-75%. Even ACC and Cairn India numbers observed negative surprise of the order of 28% and 18%, while other blue chips, including Asian paints, Kotak Mahindra, Hero Motocorp, Dabt and Infosys, failed to meet analyst estimates, albeit with a smaller margin of 0.5-5%.

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