Of the 22 S&P 500 companies that already reported, 20 beat estimates, a much higher beat rate than usual.
Angela Weiss | AFP | Getty ImagesThe good news: in the second quarter, companies delivered surprisingly large earnings beats as analysts underestimated the strength of the recovery. That is happening again.
Not in the third quarter. Analysts started out assuming that the S&P 500 would see an earnings decline of 25% compared to the same period last year. But that was the bottom, and the estimates have been steadily improving since:Still, it's a pretty bad number. If the decline comes in at down 21%, "[I]t will mark the second largest year-over-year decline in earnings reported by the index since Q2 2009," according to John Butters, who tracks earnings for Factset.
"Analysts have not had the benefit of corporate guidance, and without that guidance they assumed the worst, and the worst has not come," Raich told me. There is still a problem providing longer-term guidance for many companies. More than 25% of the companies in the S&P 500 are still not providing any earnings guidance for 2020 or 2021, according to Factset."[I]t does appear that some S&P 500 companies have better visibility on future earnings heading into the third quarter earnings season than they did heading into the second quarter earnings season," Factset's Butters said in a recent note to clients.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wisconsin police deploy tear gas as protests over Alvin Cole's death move into third nightTensions escalated for a third night in Wauwatosa, Wisconsin, as police used tear gas on demonstrators, who were protesting the fatal shooting of Alvin Cole by police.
Read more »
US records its third consecutive day of more than 50,000 coronavirus casesThe coronavirus pandemic has brought countries to a standstill. In many places, as countries reopen, Covid-19 cases are on the rise. Follow here for the latest.
Read more »
Ivory Coast opposition rallies against President Ouattara's third term bidThousands of opposition supporters rallied in the Ivory Coast's commercial capital on Saturday to protest against President Alassane Ouattara's plan to seek a third term in the Oct. 31 presidential election.
Read more »
'Nothing happening': Third-party candidacies appear less a factor in 2020“It’s Trump.” Howie Hawkins, Green Party presidential nominee, shares why he thinks third-party candidates are struggling to garner support in swing states they won in the 2016 presidential race, with some being left off the voting ballot all together.
Read more »
US reports more than 50K COVID-19 cases for third straight day; 9 states set recordFor the first time since mid-August, the U.S. has recorded its third consecutive day of more than 50,000 new COVID-19 cases.
Read more »
'Nothing happening': Third-party candidacies appear less a factor in 2020There&39;s a simple explanation, Green Party presidential nominee Howie Hawkins said. "It&39;s Trump."
Read more »