It’s still very early in the Q4 earnings reporting period, but so far companies have been able to handily beat bottom-line EPS estimates.  Where things aren’t looking so good is at the top line.  We’re seeing a worrisome trend of revenue misses.

As shown in the top chart below, 69.5% of companies that have reported this season have beaten bottom-line EPS estimates.  However, less than 50% of companies have beaten top-line revenue estimates (bottom chart).  We’ll get a much better read on things this week when hundreds more companies are set to report, but early signs point to a huge struggle for companies to meet sales expectations in Q4.  You can read more about the current earnings season in this week’s Bespoke Report newsletter, which is available with a two-week free trial to any membership level.

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