10.22.14: Q4 ’14 Earnings: Technology Sector Estimates Moving Higher

We’ll give the Energy sector a break for a few weeks and let the dust settle on the 20% drop in crude oil over the last 2 months,

Since companies are now reporting their 3rd quarter, 2014 and guiding for the 4th quarter, based on an intra-week report update from Thomson Reuters, here is how sector earnings growth expectations have changed for the q4 ’14 and the SP 500 since Oct ‘1 ’14:

First column is the sector, 2nd column is the expected growth as of October 20th, ’14, the 3rd column is the expected growth as of October 1:

Cons Disc: +12%, +13.9%

Cons Spls: +3%, +4.5%

Energy: -1.4%, +6.4% (estimates falling rapidly, hard to say how much is discounted in stock prices);

Financials: +9%, +10.4%

Health Care: +18.7%, +19.3%

Industrials: +12.2%, +12.4%

Basic Mat: +6.5%, +10%

Technology: +10.5%, +10.4%

Telco: +22.1%, +23.5%

Utilities: +7.4%, +7.8%

SP 500: +9.5%, +11%

Despite IBM, and maybe due to Apple, Technology is the ONLY sector with higher expected sector growth from 10/1/14 to 10/20/14.

Good sign.

We’ll have a more complete update this weekend.

Trinity Asset Management, Inc. by:

Brian Gilmartin, CFA

Portfolio manager


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