This is the ugliest earnings environment I have ever seen.  There is no sugarcoating it.  The numbers speak for themselves:

With 92% of the S&P reporting Q4 figures the “as reported” EPS is NEGATIVE $11.16. Operating earnings are down to $5.29 from $15.22 a year ago.  That is a 65% decline from last year.  Total net income is down 38% year over year.  Excluding financials net income is still down 21% year over year.

While my expectations ratio has improved the estimates are likely still too high.  Analysts are now expecting $65 in EPS this year.  I think that figure will likely come in closer to the $45-$50 level.  Estimates are coming down quickly and that’s a good sign, but they have room to fall.

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