Market Overview

Q3 Earnings Season: Bernstein Expects Another Down Quarter

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The Q3 earnings season could mark the seventh quarter of earnings declines, Bernstein analysts said in a report. Consensus expectations for S&P 500 earnings for the quarter imply a y/y decline of 2.6 percent, despite estimates of 2.6 percent revenue growth.

Best Performing Sectors

Amid the broad declines, 7 out of 11 sectors are expected to post positive earnings growth, with the highest likely to be reported by the consumer discretionary, real estate, utilities and health care sectors, the analysts mentioned.

Worst Performing Sector

Forecasts suggest energy as being the biggest drag, with a y/y earnings decline of 68 percent on 11 percent lower revenues. Excluding this sector, bottom line growth forecasts are up 0.6 percent on 4.1 percent revenue growth.

“While the overall picture is improving vs. the previous five quarters, if estimates are correct the S&P 500 is on track to post a seventh straight quarter of negative earnings growth,” Bernstein analysts wrote.

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