Expect Double-Digit Earnings Growth This Quarter: Pro
The upcoming earnings season is going to be the sixth consecutive quarter of double-digit earnings growth, according to Michael Thompson, managing director of Standard & Poor’s.
“Most of the cyclicals, which you would think are hurt the most by higher energy prices, are actually advancing,” Thompson told CNBC.
“And yet the defensives, which you’d expect are the ones people feel better about, are the ones that are lagging."
"Intuition is not playing out very well this quarter.”
In addition, Thompson said he expects three more quarters of double-digit earnings growth after the current season.
Thompson said the energy, materials and industrial firms are going to be the top earnings performers, while telecoms and utilities are likely to be the laggards.
Alcoa unofficially kicks off the first-quarter earnings season with results due after-the-bell Monday.
Scorecard—What He Said:
- Thompson's Previous Appearance on CNBC (Feb. 25, 2010)
CNBC Data Pages:
Major Earnings This Week:
Bank of America
No immediate information was available for Thompson or his firm.