“This coming season is going to bring good news and bad news,” wrote Dr. DiLiddo in his Views essay on Friday. He went on to say, if you’ve been following our weekly Earnings Updates, you already know that there’s going to be more bad news than good news.

From the information we receive, analysts have been lowering earnings estimates on many more companies than they are raising earnings estimates. However, the companies in the S&P500 Index appear to be weathering the storm better than other companies. You may see this by comparing a graph of the average EPS of the VectorVest Composite to that of the S&P500.
April 11 Market Climate
How does this compare with earnings in our Canadian market? We can see from the graphs below that the TSX Composite is similar to the S&P 500. Earnings have been rising and soon should cross above its 50-MA. The overall market however, represented by the VectorVest Composite (VVC/CA), shows EPS is in a stronger uptrend having already crossed above the 50-MA.
April 11 TSX
So while earnings in both CA and US are still in a weak position, Dr. DiLiddo wrote, “Do not despair, the really good news is that the drop in oil prices may have seen its worst days and the strong U.S. dollar, which caused so much pain around the world, has been weakening. Both of these factors will play an important role in restoring earnings growth in the months ahead. The best news of all is that Head of the Fed, Ms. Janet Yellen, is not likely to raise interest rates very soon.
“While this is encouraging, the damage has been done and we still have to face a difficult earnings season. I would suggest that you know when each of your companies reports earnings and take defensive action, such as selling Covered Calls or buying Puts, if you have reason to believe it might miss its earnings forecast. Be prepared, Earnings Season Is About To Begin.”
A Resource to Know When Companies Report Earnings. One of the best Earnings Calendars I’ve been able to find for both CA and US stocks is the TMX Website.
Bell weather stocks reporting next week in the US and CA include:
Earnings Calendar – US Earnings Calendar – CA
Company Symbol Expected   Company  Symbol Expected
Alcoa AA 4/11/2016 Pulse Seismic PSD 4/11/2016
Adtran ADTN 4/12/2016 Peformance Sports PSG 4/11/2016
CSX CSX 4/12/2016 Platinum Group Metals PTM 4/11/2016
Fastenal FAST 4/12/2016 Continental Precious CZQ 4/12/2016
Commerce Bancshares CBSH 4/13/2016 IntelliPharmaCeutics I 4/12/2016
JP Morgan Chase JPM 4/13/2016 Cogeco Com CGO 4/13/2016
Pier 1 Imports PIR 4/13/2016 Dominion Diamond DDC 4/13/2016
Bank of America BAC 4/14/2016 Corus Entertainment CJR.B 4/14/2016
BlackRock BLK 4/14/2016 Caldwell Partners CWL 4/14/2016
Delta Air Lines DAL 4/14/2016 Shaw Comm SJR.B 4/14/2016
First Republic Bank FRC 4/14/2016 Sterling Resources SLG 4/15/2016
PNC Financial Services PNC 4/14/2016
Wells Fargo WFC 4/14/2016
Charles Schwab SCHW 4/14/2016
First Horizon National FHN 4/15/2016
Check EPS in VectorVest Graphs. If you own a stock or you’re considering a stock to buy, VectorVest recommends you check EPS on a one-year graph. You would like to see EPS rising all the way to the right edge. EPS is a 12-month leading indicator of earnings. Below, Performance Sports Group shows analysts expect earnings to continue to fall. PSG missed consensus expectations last quarter.
April 11 PSG
Presented by Stan Heller, Consultant, VectorVest Canada

DISCLAIMER: The information contained in this Blog is for education and information purposes only. Example trades must not be considered as recommendations. You should always do your own analysis and invest based on your own risk tolerance, investment style, goals and time horizon. There are risks involved in investing and only you know your financial situation, risk tolerance, financial goals and time horizon.