Expecting Large Dispersion in Q1 Earnings Season

With the earnings season in full swing, AKAnomics is expecting a lot of revenue disconnects. In fact of the 174 US Industrials, Materials, and Consumer names it tracks, it expects 35% of them to beat revenues, and 17% to miss revenues – way more beats than misses. AKAnomics estimates have been on the right side of consensus 68% of the time for beats/misses over the live 3+ years of history.

Industrials sector is expected to show a significant improvement in underlying organic revenue growth, along with much better than consensus reading.

Within Industrials, there is high dispersion among names, so we believe having AKAnomics data will allow the investors to pick the winners versus losers this quarter.