Summary · why it matters
S&P 500 earnings are expected to rise 24.3% from a year earlier in the third quarter, the index's eighth straight quarter of double-digit growth, as JPMorgan, Citigroup and other companies report September-quarter results before the market's open on Tuesday, October 13th. This week's docket covers 29 S&P 500 members, including Johnson & Johnson, Taiwan Semiconductor Company and UnitedHealth, bringing the season's total to 48 index members by week's end; the reporting cycle officially began with results from Pepsi, Micron and Nike, whose August-ending fiscal quarters count toward the September-quarter tally. Of the 19 S&P 500 members that have already reported, earnings are up 150.9% on 27% higher revenues, with 78.9% beating EPS estimates and 73.7% beating revenue estimates, though that growth is mostly due to Micron, whose Q3 earnings rose 1075.7%; excluding Micron, the remaining 18 members would show 9.4% earnings growth. Fifteen of the 16 Zacks sectors are on track for positive earnings growth, with six set for double-digit gains: Aerospace up 159.5%, Energy up 117.1%, Tech up 43.3%, Basic Materials up 29.7%, Industrial Products up 13.3% and Transportation up 10.9%, while the Conglomerates sector is the lone decliner at negative 35.1%. Excluding Energy, S&P 500 earnings growth drops to 20.1%, and excluding Tech it falls to 14.2%; the Finance sector is expected to post 3.3% earnings growth on 6.3% higher revenues, with the Banks and Brokerages industry up 2.5% on 9.7% higher revenues. Positive estimate revisions have broadened across 7 of the 16 Zacks sectors, including Aerospace, Construction, Industrials, Finance and Transportation alongside Tech and Energy, while Q4 estimates remain under pressure for 8 sectors: Conglomerates, Autos, Basic Materials, Consumer Staples, Consumer Discretionary, Medical, Business Services and Retail.
Taiwan Semiconductor Manufacturing Co. Ltd.
Taiwan Semiconductor Co Ltd
Micron Technology Inc
Citigroup Inc.
JPMorgan Chase & Co
Johnson & Johnson
Nike Inc
PepsiCo Inc
UnitedHealth Group Incorporated