For the June season, there was a net surprise of 10%, with a 33% surprise versus expectations, 44% in line with expectations and 23% disappointment versus expectations.
In December last year, the net surprise was -12% and in June 2008 it was 0%.
"The reporting season largely followed the course we had anticipated - a substantial degree of earning surprise following a long broker downgrade cycle leading into reporting."
The more sobering assessment was that actual net profit after tax results were down 19% on June last year, he said.
Craigs' aggregate analysis of ASX-200 non-financial stocks demonstrated the earnings surprise evident was largely by better-than-expected results at the net interest and tax lines.
"Clearly, corporate Australia has room to move on the expense front."
Craigs had consistently tracked management outlook comments as an indication of near-term business conditions, Mr Timms said.
In aggregate, they were positive this season, reflecting the improvement in the macro environment over the past six months.
However, they should also be judged in context of the last reporting season, which reflected the very worst of the global financial crisis.
Management had expressed a collective "sigh of relief", he said.
"We see the positive management outlook commentary as evidence of improving conditions at the coal face. Market valuations remain fair to full, but the upgrade cycle post reporting still has a little way to run."
Main points:
> Results surprised with 33% of stocks Craigs covered up on forecasts and 23% down.
> Earnings were down 19% on June 2008.
> Earnings upgrades re-emerge.
> Positive management outlook comments.
> Dividends cut by nearly 25% on June results.
> Capital raised at very high levels, gearing at very low levels suggesting a market consolidation phase.
