“Crocuses and corporate profits apparently have something in common. Both are emerging with the first signs of spring,” writes Karen Talley in today’s Wall Street Journal.

“Positive earnings preannouncements are at their highest level in seven years, with more companies telling Wall Street that they won’t only meet, but beat analysts’ expectations for the first quarter.”

“At the same time, the number of companies saying they will miss expectations is declining. To be sure, the market is not yet over the hump — the first quarter will mark the fifth time in a row that quarterly profits decline, a string not seen since the early 1970s.”

“But the tide is shifting, with the second quarter expected to see companies return to profitability. One leading indicator: positive preannouncements. ‘We’re returning to a more normal environment,’ said Joe Cooper, research analyst with Thomson Financial/First Call. ‘Negative reports are decreasing and positive announcements are increasing.’ “

“The news comes as the preannouncment season is winding down, so Mr. Cooper is confident that the upbeat conditions won’t become overshadowed by a slew of negative warnings.”

“Through Tuesday morning, 829 companies had preannounced, with 247, or 30%, saying they will come in higher than expectations. That compares with 25% at this point in the fourth quarter, 17% in both the second and third quarters and 14% in the first quarter.”

“At the same time, negative confessions are waning, with 404 of the 829 companies having made negative preannouncements for the first quarter. This compares with 536 companies in the fourth quarter, a figure that, while high, has been declining since the first quarter of 2001, when 935 companies said they would miss their numbers.”