Q3 earnings expectations for S&P 500 have decreased, negatively impacting multiple sectors

From Nasdaq: 2024-09-25 18:45:00

Estimates for S&P 500 earnings in 2024 Q3 have decreased significantly since the start of the period, with total earnings expected to be up +3.2% from the same period last year on +4.5% higher revenues. Negative revisions have affected 14 of the 16 Zacks sectors, with notable declines in Transportation, Aerospace, Energy, Basic Materials, and more.

JPMorgan and Wells Fargo will initiate the Q3 earnings season for the Finance sector. JPMorgan saw a -6.7% decline in Q3 earnings estimates, with the overall industry expected to have total earnings -16.6% below last year’s level. Loan demand issues persist despite the easing policy of the Fed, impacting both big banks and the financial sector as a whole.

Overall, the Q3 earnings outlook is challenging due to negative revisions across multiple sectors. Energy and Transportation are particularly affected, with softening demand trends impacting earnings growth. However, the quarterly earnings growth pace is expected to improve from next quarter onwards, offering some optimism for the future.



Read more at Nasdaq:: Q3 Earnings Season: A Look Ahead