Long Term Earnings Charts
Posted by NHF | Posted in Stock Fundamental Analysis | Posted on 1:57 pm August 27, 2009
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Below are a couple of charts showing the earnings situations long term. Using data that goes back to 1989, which is the max with the Standard and Poors Data.
- First chart shows the Operating Earnings trend with an overlay of the S&P 500 performance during the same time period.
Next chart on full post….
- The second chart shows the P/E ratios using both “Operating Earnings” and “As Reported Earnings”. (for some information on the difference in the earnings go to a previous post here)
As you can see we are in unusual times to say the least. The As Reported Earnings P/E is out of the stratosphere due to the large negative Q1 numbers.
What thoughts come to mind when looking at these charts?
More on this topic
(What's this?)
Manipulating earnings
(Canadian Business Blog, 2/24/10)
EARNINGS ESTIMATES ARE A MAJOR MARKET HURDLE
(THE PRAGMATIC CAPITALIST, 3/3/10)
CHART OF THE DAY: THE HUGE EARNINGS REBOUND
(THE PRAGMATIC CAPITALIST, 2/21/10)
There are a lot of different things to see from these charts and we wanted to keep it open on our opinions so as not to persuade either way.
What I find interesting is how the previous spike in As Reported P/E ratio preceeded a large rally
Yeah I know… Im not sure how much to read into that. If the rally is proportional to the size of the P/E spike we are talking some serious upside!! ha
I wish standard and poors had more historical data so as to look back to other bear markets like 73 or the great depression time frame… but they didn’t even exist yet.