Earnings Outlook: Q3 forecast for S-P 500 is now negative

September 12, 2008

Downgrades to the profits forecasts for financials is driving the decline in earnings outlook for the S&P 500 stocks for the third quarter.

At this time, the estimated growth rate for Q3 2008 stands at -1.6%. On July 1st, the estimated growth rate was 12.6%. If the final growth rate for Q3 2008 is -1.6%, it will mark the first time the S&P 500 has recorded five consecutive quarters of negative earnings growth since Q1 2001 – Q2 2002.

The decline in the Q3 2008 growth rate during the past week (to -1.6% from 0.8%) can be attributed to downward estimate revisions to a number of companies in the Financials sector including Lehman Brothers.

(Ed’s note: John Butters is the director of U.S. earnings at the Thomson Reuters Proprietary Research Group. A PDF with the full weekly earnings outlook from is here.)

No comments so far

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/