Estimates for Q3 earnings revised downward, negative trend across sectors, positive for Aerospace and Tech.

From Nasdaq: 2024-09-05 19:00:00

Estimates for 2024 Q3 have been revised downward significantly, with S&P 500 earnings expected to be up +3.9% from last year. Negative revisions are widespread across sectors, with double-digit growth expected in Aerospace and Tech. Energy and Conglomerates are the biggest decliners. Tech leads in earnings growth, while excluding Tech, growth is only +1.1%.

The revisions trend for Q3 earnings is negative, with estimates cut for 14 of the 16 Zacks sectors. Transportation and Energy sectors face the biggest declines. The Energy sector’s earnings are expected to drop by -14.3% in Q3. Technology and Finance sectors show positive estimate revisions.

Following negative revisions, Q3 earnings are expected to be below the year-earlier level for 7 sectors. Energy sector earnings are projected to decline by -14.3%. Tech sector continues to show double-digit growth for the 5th quarter in a row. The Magnificent 7 companies are forecasted to have +17% earnings growth.

The Finance sector shows revenue weakness, impacting overall earnings growth rate of +8.0% for 2024. Excluding Finance, earnings growth pace improves to +7.5%. Half of the earnings growth is supported by revenue growth. Analysts expect $233.43 EPS for 2024 and $268.62 for 2025 for the S&P 500 index based on P/E ratios.



Read more at Nasdaq:: Previewing Q3 Earnings Season | Nasdaq