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According to analysts in Bloomberg Intelligence, S&P 500 firms are expected to report a 4.2% increase in third-quarter earnings as against the previous year. It is down from a 7% forecast in mid-July. Guidance by the firms, on the other hand, implies a jump of about 16%.
Corporate outlooks in the US give confusing traction. While analysts have cut forecasts, company guidance points to another strong quarter. The trend is important coming at a time the country is going to poll in two weeks to elect a new president.
According to analysts in Bloomberg Intelligence, S&P 500 firms are expected to report a 4.2% increase in third-quarter earnings as against the previous year. It is down from a 7% forecast in mid-July. Guidance by the firms, on the other hand, implies a jump of about 16%.
Meanwhile, a Citigroup index of earnings revisions showed strong negative momentum in September, dipping to its lowest level since December 2022. Despite analysts’ fears, the S&P 500 hit another record high on Friday and is up 22% in 2024, its best start to a year since 1997.
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That’s a hint that investors are not deterred by the reduced forecasts and instead betting that this earnings season will once again deliver positive surprises, just like it did in the first quarter when expectations were for 3.8% growth and it turned out to be 7.9%.
