Nick Raich, CEO Of The Earnings Scout, Sees Acceleration In Earnings

The Earnings Scout CEO Nick Raich appeared on CNBC's Squawk Box to disucss the positive trends he's seen this

, despite the outlook many naysayers. "We think a lot of people think it's not great because they look at the earnings as if it's a snapshot in time, but we look at where it's coming from and where it's going to most importantly be," said Raich. "And when you look at it as a snapshot in time it kind of does look bad, particularly with third quarter guidance. We're halfway through earnings season and we see 53 percent of companies that have reported are lower than their third quarter guidance on an average by about 1.8 percent, but the key here is that the rate at which they're lowering it isn't nearly as bad as it was the quarter before or the quarter before that. So, we're seeing a lot of positive rates of change to the expectations and that's a positive."

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Raich said that they're also seeing a "re-acceleration" of earnings growth rates and sales "from the first quarter" for 52 percent of the of the companies reported, with an average rate of 4.5 percent growth. According to Raich, it was an unexpected positive for the season, but sales growth has been running at 3 to 5 percent each quarter year-over-year. "But in the first quarter that sales growth rate was only 2.5 percent. So people who say 'Yeah, earnings growth is fine, but sales growth is weak,' you know, that was a true statement in the first quarter, sales really weakened. What we're seeing is a re-acceleration here in the second year-over-year for the second quarter," said Raich. Raich went on to say that people who have a negative view on earnings right now aren't looking at the improving trends from over the past two years. He cited less severity in lowering expectations from quarter to quarter as a positive, and along with Fed support, a reason for the rally around stocks.