Q3 Earnings Growth Not All That Bad

Below we highlight the current year-over-year growth (or decline) in earnings for the S&P 500 and its ten sectors in the third quarter.  As shown, the Energy sector has seen the best growth at 55.9%, which is 10.6 points better than the expected 45.3% growth at the start of the reporting period. 

Surprisingly, Consumer Discretionary has had the second best growth at 20.4%, while it was expected to see earnings decline by 10% at the start of October.  Industrials, Utilities, Telecom and Financials have all seen earnings decline in Q3 '08 vs. Q3 '07. 

Overall, the S&P 500 has seen earnings decline by 10.5% in Q3 '08, which is about twice as bad as was expected prior to earnings season.  This decline is all due to the Financial sector, however, and every other sector is faring better than the index as a whole.

click to enlarge

Comments

[Jim Faber:]

We'll have to wait another quarter or two then for the coming implosions in energy and consumer discretionary

2008 Nov 03 08:06 PM

[Matt Blackman:]

I'm having a hard time reconciling this report with one from the Wall Street Journal this week that showed Q2-08 earnings were down 42% versus Q3-07 for the 1837 companies that had reported so far and the decline has been increasing as earnings season has progressed.

So is that "not all that bad"??

2008 Nov 04 12:48 PM