Earnings Look Strong Now, But Growth May Not Last

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var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124); cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML; Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-iNet (4638)Text Message: Text NETNET followed by your tip to 26221. if (cnbc_DARTFlag=="new") { cnbc_DARTAdCall(300,250,"CNBGE3"); } else { dapMgr.enableACB("USNewsBlogs300x250",false); dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=1089&PN=CNBC",300,250); } Current DateTime: 11:24:44 11 Apr 2011LinksList Documentid: 38910464Expiration DateTime: 4/11/2011 11:27:44 AM cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" ); Everyone on Wall Street Agrees with Bill Gross: Short Treasuries cnbc_commentCountMapObj.cnbc_commentCountMap_put("42536993", "38910464_1","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42536993", "38910464_1","cnbcCommentsTxt" ); Lynn Tilton: The Wildest Woman in American Business cnbc_commentCountMapObj.cnbc_commentCountMap_put("42535654", "38910464_2","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42535654", "38910464_2","cnbcCommentsTxt" ); Earnings Look Strong Now, But Growth May Not Last cnbc_commentCountMapObj.cnbc_commentCountMap_put("42536741", "38910464_3","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42536741", "38910464_3","cnbcCommentsTxt" ); The SEC Revives Profit-Flipping cnbc_commentCountMapObj.cnbc_commentCountMap_put("42535050", "38910464_4","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42535050", "38910464_4","cnbcCommentsTxt" ); 'Ring Fencing' UK Banks cnbc_commentCountMapObj.cnbc_commentCountMap_put("42533068", "38910464_5","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42533068", "38910464_5","cnbcCommentsTxt" ); Madoff Finds 'Love' Behind Bars, Wants to Teach Business Ethics cnbc_commentCountMapObj.cnbc_commentCountMap_put("42532234", "38910464_6","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42532234", "38910464_6","cnbcCommentsTxt" ); Waking up With Nicole Lapin cnbc_commentCountMapObj.cnbc_commentCountMap_put("42532302", "38910464_7","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42532302", "38910464_7","cnbcCommentsTxt" ); Federal Government Careens Toward Shutdown cnbc_commentCountMapObj.cnbc_commentCountMap_put("42498500", "38910464_8","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42498500", "38910464_8","cnbcCommentsTxt" ); Madoff Points Finger Of Blame At Banks cnbc_commentCountMapObj.cnbc_commentCountMap_put("42499164", "38910464_9","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42499164", "38910464_9","cnbcCommentsTxt" ); Small Businesses Support Shutdown cnbc_commentCountMapObj.cnbc_commentCountMap_put("42497572", "38910464_10","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42497572", "38910464_10","cnbcCommentsTxt" ); Antitrust Regulators Will Keep Working During a Shutdown cnbc_commentCountMapObj.cnbc_commentCountMap_put("42496358", "38910464_11","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42496358", "38910464_11","cnbcCommentsTxt" ); The SEC's Government Shutdown Plan cnbc_commentCountMapObj.cnbc_commentCountMap_put("42495669", "38910464_12","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42495669", "38910464_12","cnbcCommentsTxt" ); Muni Fears and the Government Shutdown cnbc_commentCountMapObj.cnbc_commentCountMap_put("42494168", "38910464_13","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42494168", "38910464_13","cnbcCommentsTxt" ); Liquidity Versus Solvency"”Deconstructed for TwentySomethings"”Part II cnbc_commentCountMapObj.cnbc_commentCountMap_put("42492709", "38910464_14","cnbcCommentsTxt" ); cnbc_commentCountMapObj.cnbc_commentCountMap_put("42492709", "38910464_14","cnbcCommentsTxt" ); Uh-Oh! 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Runs this joint.

Cadie Thompson

Really, really runs this joint.

Ash Bennington

NetNet Special Reporter

Kate Kelly

Reports on the major Wall Street firms, trading, and regulation.

Jeff Cox

A staff writer with CNBC.com, covering the gamut of issues affecting the stock market and the economy.

Lori Spechler

A Senior Editor at CNBC, commodity trader in a former life.

Lori Ann LaRocco

A Senior Talent Producer at CNBC.

Nicole Lapin

Runs the graveyard.

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dapMgr.enableACB("Context300",false); dapMgr.renderAd("Context300","&PG=CNBAL3&AP=1089&PN=CNBC",300,250); setDefault('cnbc_textbody');Earnings Look Strong Now, But Growth May Not LastPublished: Monday, 11 Apr 2011 | 1:40 PM ET Text Size By: Jeff CoxCNBC.com Staff Writer window.fbAsyncInit = function() { FB.init({appId: 'your app id', status: true, cookie: true, xfbml: true}); }; (function() { var e = document.createElement('script'); e.async = true; e.src = document.location.protocol + '//connect.facebook.net/en_US/all.js'; document.getElementById('fb-root').appendChild(e); }()); var sUrl = window.location; var str = '' $(".fbButton").html(str); //alert("1 :::: " + jQuery("#ssShare").length); Twitter cnbc_createTwitterURL();LinkedIn addthis_pub = 'cnbccomrssfeeds'; addthis_hide_embed=false; addthis_options = 'linkedin, digg, delicious, google,facebook,more'; More Share

Caroline Purser | Getty ImagesAs investors prepare for the beginning of earnings season, two threats are lurking in the shadows: Toppy corporate profit margins and the threat to a consumer just showing signs of recovery.

Should either specter emerge from the dark it could cast a scary pall over how strong growth will be in coming quarters.

First, margins: Analysts such as Doug Cliggott at Credit Suisse and Nick Colas at ConvergEx believe profit margins and revenue growth, respectively, are showing signs of tiring and that consequently could hit future expectations.

In analysis released Monday, Colas, the chief market strategist at New York-based ConvergEx, warns that revenue expectations are "dangerously near the "?Tipping Point' of 2-3% revenue growth where most companies have trouble showing significant earnings leverage."

This would be a significant trend in that investors are just getting used to the notion that companies have begun to shed the practice of beating earnings expectations on simple cost-cutting and now are hitting an actual growth period.

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