Mutual fund analysts may have set their hopes too high for the first quarter of 2007, as company earnings didn't reach the levels they had hoped, experts said during Lipper's first quarter fund performance review and outlook webcast last week.

Earnings of companies in the Standard & Poor's 500 Index are now expected to grow 5.1% for the quarter, compared to a 9.2% projection when the quarter first started, said Ashwani Kaul, a senior markets analyst with Reuters Estimates. However, once all companies report, the earnings growth rate could reach 7%, Kaul said. By comparison, the first quarter of 2006 had a growth rate of 14.4%.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.