Earnings estimates not exactly moonshots

From 24/7 Wall St., here is some sound advice in connection with the spate of “positive” earnings announcements over the past few sessions –

“From what we have seen in S&P 500 components so far this earnings season, we have roughly 70% of companies beating earnings estimates as the estimates were set at very conservative levels. We would argue that this was not conservative but artificially lower. In short, we would not expect positive reactions in the companies that miss or that might have been given a “good enough considering the economy” reception we saw in last quarter’s earnings season.”