Welcome to the start of a brand-new Earnings Season – Q3! Although US stocks are known to perform best in Q4 usually, the first two quarters of 2023 have already surpassed expectations. Despite higher inflation rates, the US GDP exceeded the anticipated result of 1.3% growth by expanding 2% (annualized), while US inflation declined to 0.1% in May.
Can we expect a continuation of positive developments for Q3? Unfortunately, total S&P earnings are expected to decrease by -2.0% compared to Q3 2022, the fourth quarter of continuing decline. Nevertheless, out of the 17 S&P 500 companies that have already reported their Q3 results, total earnings are up by 0.6%, while revenues are up by 4.02%. Of these companies, 82.4% have beaten estimated earnings per share (EPS), and 70.6% have beaten revenue estimates.
Will this reversal of expectations continue? If this is the case, a positive impact could be expected on stock prices – as well as the potential for profit. Stay tuned!
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