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