Estimates for Q3 earnings have decreased, with negative revisions, but some sectors show growth.

From Nasdaq: 2024-09-11 18:20:00

Estimates for 2024 Q3 earnings have decreased significantly since the beginning of the period, with a negative shift in revisions. S&P 500 earnings are expected to be up 3.9% from last year. The Technology sector is anticipated to have double-digit earnings growth for the 5th consecutive quarter. The ‘Magnificent 7’ companies are projected to see a 17% increase in earnings for Q3.

JPMorgan is expected to report $4.06 per share in earnings for 2024 Q3, a 6.2% decrease from last year. Bank of America and Wells Fargo are also expected to have declines in Q3 earnings. The Zacks Major Banks industry is expected to see a decrease of 16.5% in total earnings for the quarter. The core banking business faces challenges with net interest margins and credit quality metrics.

The revisions trend for Q3 earnings has been negative, with estimates down for 14 of 16 Zacks sectors. Energy and Transportation sectors have seen the most significant declines. The quarterly earnings growth rate is expected to improve from the next quarter onwards. The Finance sector’s revenue weakness has impacted overall earnings growth. About half of this year’s earnings growth is attributed to revenue growth.



Read more at Nasdaq:: What Will the Q3 Earnings Season Show?