Fourth Quarter Earnings Performances of the Dow Stocks

With the fourth quarter earnings season now complete, takes a look at the fourth quarter earnings performances of the Dow stocks.

On a positive note, 22 of the 30 Dow stock components posted earnings that exceeded Wall Street’s consensus estimates. However, this was down from the 26 stocks that exceed earnings estimates in the third quarter.

5 Dow stocks delivered fourth quarter results that were below consensus expectations.

Alcoa – particularly disappointing given the strengthening in aluminum prices
Bank of America – lower trading revenues weighed on results despite improving credit ratios
Coca Cola – increased marketing spending resulted in a very slight earnings miss
Pfizer – higher expenses offset better than expected revenues
Chevron – shortfall in the downstream segment reflecting weaker demand

While many the overall Dow stocks earnings performances didn’t appear as strong as in the third quarter, 20 of the 30 Dow stocks did post year/year increases in earnings. While this is certainly an improvement over what we’ve seen in previous quarters, one third of the Dow stocks still reported year/year earnings declines in the fourth quarter.


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