Third-quarter US earnings now seen growing 4.3% year-on-year -LSEG data
NEW YORK (Reuters) — U.S. third-quarter earnings estimates are looking more optimistic, with overall S&P 500 earnings expected to have increased 4.3% from a year ago, LSEG data showed on Friday.
That estimate, with results in now from half of the S&P 500 companies, is up from an estimate on Wednesday for a 2.6% gain in the third quarter. The forecasts are based on actual results from S&P 500 companies that have reported and estimates for the rest.
A slew of big-name S&P 500 companies reported results this week in the busiest period of the quarter's U.S. reporting season. Among them was Intel (NASDAQ:INTC), whose results late on Thursday showed adjusted earnings that beat analysts' earnings expectations. Microsoft (NASDAQ:MSFT) this week also reported stronger-than-expected results.
Third-quarter U.S. earnings are being carefully watched by investors following a 2.8% year-over-year S&P 500 earnings decline in the second quarter, and as major U.S. stock indexes have been losing ground amid worries over rising U.S. Treasury yields.
The S&P 500 is down about 3.7% for the month so far, while the Nasdaq is down about 4% in that period.
About 78% of the quarterly reports so far are beating analysts' earnings expectations compared with an average of 74% over the past four reporting periods, based on LSEG data.
Also, analysts now see fourth-quarter S&P 500 earnings rising 8.5% year-over-year.
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