Sales: 866.322.8738Support: 877.322.8738
x

During the third quarter, analysts lowered earnings estimates for companies in the S&P 500 for the quarter. The Q3 bottom-up EPS estimate (which is an aggregation of the estimates for all the companies in the index) dropped by 3.5% (to $29.01 from $30.07) during this period. How significant is a 3.5% decline in the bottom-up EPS estimate during a quarter? How does this decrease compare to recent quarters?

large_1.png

During the past year (four quarters), the average decline in the bottom-up EPS estimate during a quarter has been 5.3%. During the past five years (20 quarters), the average decline in the bottom-up EPS estimate during a quarter has been 3.6%. During the past 10 years (40 quarters), the average decline in the bottom-up EPS estimate during a quarter has been 5.1%. Thus, the decline in the bottom-up EPS estimate recorded during the course of the third quarter was lower than the one-year average, the five-year average, and the 10-year average for a quarter.

The value of the S&P 500 also declined during the third quarter. From June 30 through September 30, the value of the index decreased by 6.9% (to 1920.03 from 2063.11). As a result, the third quarter marked the second consecutive quarter in which both the bottom-up EPS estimate and the value of the index fell during the course of the quarter. The last time the index witnessed a decline in both the bottom-up EPS estimate and the value of the index for two straight quarters was four years ago (Q2 2011 and Q3 2011).

large-2.png

Read more about earnings trends in this edition of FactSet Earnings Insight. Visit www.factset.com/earningsinsight to launch the latest report.

bg-img14.jpg

Join Our Newsletter

Join over 2,000 other marketing pros in subscribing to the award-winning our Blog.

 

Leave a Comment

Senior Earnings Analyst
John’s weekly research report, Earnings Insight provides analysis and commentary on trends in corporate earnings data for the S&P 500, including revisions to estimates, year-over-year growth, performance relative to expectations, and valuations. He is a widely used source for the media and has appeared on CNBC, Fox Business News, and the Business News Network. In addition, he has been cited by numerous print and online publications such as The Wall Street Journal, Financial Times, The New York Times, MarketWatch, and Yahoo! Finance.

FactSet Insight

Contact Us

If you are looking to source FactSet data or analytics in your publication, have a question for one of our authors, or need help with your subscription, please drop us a line.
Contact Us