The Canadian S&P/TSX Composite index is entering another reporting season. 53 companies representing approximately 30% of S&P/TSX Composite market capitalization have yet to report in October followed by another 170 index constituents in November and 16 in December.
Earnings expectations
The S&P/TSX Composite index estimate of net income for the Q3 2012 calendar quarter is $26,040M which represents a growth rate of -8.3% (Qt/Qt-4). The estimate for the Q4 2012 calendar quarter is $29,167M, suggesting an annual growth of +7.8% (Qt/Qt-4).
Earnings expectations by sector (GICS Level 1)
From a sector perspective Utilities (+154.2.0%) and Health Care (+52.7%) are expected to record the largest growth in net income for the Q3 2012 calendar quarter. The Information Technology (-77.5%), Materials (-27.1%) and Energy (-24.6%) sectors are expected to show the weakest growth over the respective period. Six of 10 sectors are expected to record an increase in net income when compared to net income reported for a comparable period one-year earlier.
Sales/Revenue expectations
The S&P/TSX Composite index estimate of sales/revenue for the Q3 2012 calendar quarter is $273,952M which represents a growth rate of -2.8% (Qt/Qt-4). The estimate for the Q4 2012 calendar quarter is $281,286M, suggesting an annual growth of +4.7% (Qt/Qt-4).
Profit Margin expectations
The S&P/TSX Composite index estimate of profit margin for the Q3 2012 calendar quarter is 9.5% which represents a growth rate of -5.6% (Qt/Qt-4). The estimate for the Q4 2012 calendar quarter is 10.4%, suggesting an annual growth of +2.9% (Qt/Qt-4).
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