Q3 earnings expectations overall positive, with double-digit growth in tech, but some sectors affected negatively

From Nasdaq: 2024-10-09 18:30:00

Estimates for 2024 Q3 have decreased since July 1st, with total S&P 500 earnings expected to be up +3.1% from last year on +4.4% higher revenues. Q3 marks the 5th consecutive quarter of double-digit earnings growth for the Tech sector. Earnings are forecasted to accelerate in the following quarters, reaching new all-time records.

Pepsi reported slightly beating EPS but missing revenue and lowering guidance. While a mixed showing, Pepsi’s results were better than feared. Among the 22 S&P 500 members that reported, a deceleration in earnings and revenue growth was noted. The negative revisions trend was widespread across sectors, excluding positive estimates for Tech and Finance.

The negative revisions trend affected the Transportation and Energy sectors the most. Despite the Q3 outlook, earnings growth is expected to improve in the following quarters. This year’s earnings growth is attributed to margin gains, with the Finance sector showing revenue weakness. The top stocks to watch for potential growth have been highlighted.



Read more at Nasdaq:: A Detailed Analysis of Q3 Earnings Expectations