Today marks the unofficial start to the 19Q3 earnings season. The S&P 500 is expected to see 19Q3 YoY earnings decline 3.0%, which would be the first decline since 16Q2. However, fifteen of the 24 industry groups within the index are expected to post earnings gains. Given that the majority of companies typically beat earnings expectations and that the growth rate improves by a median of 3.4 percentage points, it is likely that 19Q3’s YoY earnings will turn positive by the end of earnings season.
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