Author : jaidev
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US forecasts for the second and third quarters show a steady improvement in earnings before analysts see a return to positive growth |
Earnings of US corporate are getting better than expected in the first quarter, compared with the previous quarter as bank results stabilize, however, profitability remains well below pre-recession levels.
Forecasts for the second and third quarters show a steady improvement in earnings before analysts see a return to positive growth, hand in hand with an economic recovery, in the last quarter of 2009.
Improved earnings performance has been helped by a better-than-expected set of results from many banks, which posted a massive fall in earnings in the previous quarter. With around a quarter of S&P 500 companies having reported so far, data shows an average annual decline of 36 per cent in first-quarter earnings, compared with a 67 per cent drop in fourth-quarter profits, according to the Thomson Reuters' Director's Report.
Source : Reuters
