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Unusual Pattern Emerges from Warnings Season

With only a handful of days left until the quarter draws to a close, it’s time to prepare for what lies ahead.

Although nobody has a crystal ball, money pros often rely on the revised earnings estimates released during Warning Season to help prepare for the future.

Paul Hickey of Bespoke has sifted through all the newly released earnings revisions and he's spotted a curious trend. He says the number of positive revisions are exceeding the number of negative revisions.

And that’s unusual.

“Typically ahead of earnings, analysts take down their estimates,” he says. “This is a surprise, estimates are coming up into earnings."

Following is a list of companies with the most positive revisions.

Sector Most Positive Revisions
Consumer Discr Darden, Dick’s, Home Depot
Consumer Staples Kroger, Monster Bev, Safeway
Technology Motorola Solutions, Broadcom, LSI
Source: Bespoke Investment Group

What should you make of it all?

Trader Brian Kelly find data points like this telling. “When I hear something like this, I think it adds to fuel for a higher market.”

Of course you could argue that the analyst community is too bullish. But Hickey doesn't think they are. "I still think we're going to see average to above average beat rates this quarter."

What do you think? We want to know!

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Not a Scientific Survey. Results may not total 100% due to rounding.



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Trader disclosure: On Mar 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long PEP; Tim Seymour is long DELL; Tim Seymour is long IBM; Tim Seymour is long HPQ; Tim Seymour is long AAPL; Brian Kelly is long SMH; Brian Kelly is long QQQ ; Brian Kelly is long SPY CALLS; Brian Kelly is long IWM CALLS; Brian Kelly is long MEXICAN PESO; Brian Kelly is long US DOLLAR; Brian Kelly is short EWA; Brian Kelly is short EWY; Brian Kelly is short EWH; Brian Kelly is short EWY AUSSIE $; Brian Kelly is short NEW ZEALAND $; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long SCCO; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long INTC; Josh Brown is long MRO; Josh Brown is long SBUX; Josh Brown is long COP; Josh Brown is long DELL

For Sara Senatore
Bernstein currently makes a market in SBUX

For John Kronthal
Nothing to disclose

For Paul Hickey
Nothing to disclose

For Philip Verleger
Nothing to disclose

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