- S&P 500 Q3 earnings are on track for +24.1% y/y growth on +11.6% higher revenues, with 14 of 16 Zacks sectors expected to grow and the eighth straight quarter of double-digit growth.
- FactSet expects +29.5% earnings growth and +12.3% revenue growth, with all 11 sectors growing, 62% of companies issuing upbeat EPS guidance, and estimates raised 1.4% during Q3.
- Semis are the largest contributor: the Zacks Semiconductor industry is expected to post +85.5% earnings growth in Q3, while Tech sector growth falls to +20.6% excluding Nvidia, Micron, and Alphabet.
- Panmure Liberum strategist Klement tells investors to watch artificial-intelligence spending in the upcoming earnings season, flagging it as the key variable for the S&P 500.
- Forward 12-month P/E of 19.0 is below the 5-year average of 19.8 and the 10-year average of 19.1.
Quotes
“Keep an eye on artificial-intelligence spending in the upcoming earnings season”
“Q3 will also be the 8th straight quarter of double-digit earnings growth for the S&P 500 index.”
“the S&P 500 is projected to report a year-over-year earnings growth of 29.5% and revenue growth of 12.3%”