Q3 earnings season expected to see a +3.8% growth on higher revenues, but negative revisions in sectors.

From Nasdaq: 2024-08-30 16:16:00

Total Q3 earnings for the S&P 500 index are expected to be up +3.8% from the same period last year on +4.6% higher revenues. The +8% earnings growth this year is predicted to improve to +9.6% on an ex-Energy basis. Earnings picture remains stable, with select sectors experiencing significant declines in estimates.

Despite stable earnings, the overall trend shows negative revisions for Q3 estimates in various sectors, notably Transportation, Energy, Business Services, and Aerospace. The Tech and Finance sectors are exceptions with modestly risen estimates. The trend is widespread across 14 out of 16 Zacks sectors, indicating a challenging earnings outlook for 2024.

Nvidia reported a significant increase in Q2 earnings by +157.4% from the same period last year, with revenues up by +122.4%. However, despite a beat-and-raise quarterly report, the market reacted negatively due to guidance falling short. Nvidia’s stock has impressive year-to-date gains, which may have impacted market response.

For 494 S&P 500 members who have reported Q2 results, total earnings are up +8.6% from the same period last year on +3.6% higher revenues. However, only 60.1% were able to beat revenue estimates, indicating a new low over the past 20 quarters. The earnings season isn’t over, with 6 index members yet to report quarterly results.



Read more at Nasdaq:: Looking Ahead to the Q3 Earnings Season