Earnings Growth Falls Below 10%

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By Douglas A. McIntyre Updated Published

From Ticker Sense

Fourth quarter S&P 500 earnings numbers were finalized at $21.99 per share by Standard & Poor’s.  This brings to an end the 18 consecutive quarter streak of double digit year over year earnings growth.

The table below highlights year over year earnings growth going back to 1989 as provided by Standard & Poor’s.  While the 18 consecutive quarters of double digit growth is the longest streak of its kind, there was a 13 consecutive quarter streak from 1992 to 1995.  Once that streak ended, growth remained low for the next couple of years, but it did not seem to negatively affect the markets.

What affects the markets is when expectations for growth are not fulfilled.  Expectations for the next three quarters are fairly low, with a rebound expected in the fourth quarter of this year (shown in red on the chart).

Epsgrowth

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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