Over the past month, sell-side analysts have reduced expectations for this upcoming earnings season. Most of these cuts are specific to only a few sectors, the ones with the biggest supply-chain and inflationary pressures.
As of Oct. 8, S&P 500 earnings are expected to grow by 28.4% year-on-year, down from expectations of 28.8% on Sept. 10.
Much of that change comes from adjustments in just three sectors: industrials (-6.6%), consumer discretionary (-3%) and utilities (-2.4%), all sectors where there are concerns over pricing power. The information technology sector has actually seen analysts revise earning growth expectations higher by 0.3% over the past month despite the increase in interest rates.
As of Oct. 8, S&P 500 earnings are expected to grow by 28.4% year-on-year, down from expectations of 28.8% on Sept. 10.
Much of that change comes from adjustments in just three sectors: industrials (-6.6%), consumer discretionary (-3%) and utilities (-2.4%), all sectors where there are concerns over pricing power. The information technology sector has actually seen analysts revise earning growth expectations higher by 0.3% over the past month despite the increase in interest rates.