Early birds show positive surprises in Q3 results

A strong set of numbers have been reported by technology firms in the quarter ending December, 2012. Analysts say that most companies have surprised the market with their earnings beating the expectations.

According to Barclays, 17 of the BSE 100 companies that have reported Q3 FY13 earnings highlight three key trends.

1. The FY13 y-o-y earnings growth forecast for BSE 100 companies is currently 8.7 per cent as compared with 9.5 per cent at the close of the 2Q FY13 reporting season.

2. Earnings beats have significantly outnumbered misses so far with 71 per cent of the companies reporting positive earnings per share (EPS) surprise as opposed to 23.5 per cent reporting negative surprise. The sales beats/misses trend has been positive as well. About 41 per cent of the reported companies have beaten the top line estimates and 12 per cent have missed it.

3. The post-results share price performances have been the strongest in IT sector with shares trading up 3.4 per cent on average on the day of results and weakest in Consumer Discretionary, with shares trading down an average by -4.8 per cent on the day.

(Edited by Prem Udayabhanu)

Leave Your Comment(s)