Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
- Earnings releases in the last few days suggest that the positive momentum we started seeing in the overall earnings picture in early July is still very much in place and reflects favorable trends in the U.S. economy.
- For 2020 Q3, total S&P 500 earnings are expected to decline -23.5% on -3.1% lower revenues. This is an improvement from the -26.5% earnings decline expected at the start of July and follows the -32.1% earnings drop in Q2.
- Sectors with the weakest Q3 growth outlook remain the social-distancing exposed spaces like Transportation (-122.6% earnings decline), Energy (-100.4%), and Consumer Discretionary (-89.2%).
- 14 of the 16 Zacks sectors are expected to experience earnings declines