HBJ has an article today regarding Kinder Morgan missing their earnings forecast for 4Q 2011. Earlier yesterday zerohedge pointed me to a Bloomberg graph showing that 4Q 2011 actual vs forecast earnings are the worst since the end of 2007 / beginning of the recession. Although I don’t know the specifics behind the 63% of S&P 500 companies that missed their earnings projections, but I know the expectation is that the 63% will grow as companies revise their figures – most often downward.
The drop off from 3Q 2011 to 4Q is fairly precipitous too – but it is clear that peak was at 2Q 2010. Not sure what the cause is, but it may be a result of the prolonged jobs issue and the slow release of credit from the banking sector. Low job growth begets, slow consumption increase (as illustrated in 4Q 2011’s lack lust retail sales growth). And the banks’ continued balance sheet issues continue to stifle credit to both businesses and consumers. Just a guess.