Q3 2017 Earnings Preview
a. Slight sales/EPS growth deceleration expected in Q3 for the S&P 500 and most sectors. But, consistent upside EPS surprises over six
years likely to continue. Assuming normal beats, about 9% EPS growth expected versus 11% in Q2, p.3–5
b. Excluding Energy (many coming from negative EPS in Q3 2017), Technology is expected to have the best EPS growth for a second
quarter. Energy and Technology have had the biggest EPS beats over the past two quarters, p.3–5
c. Q4 guidance will be key, as the expectation is for reacceleration of EPS growth in Q4, p.3–5
d. S&P 500 valuation full relative to history, so expect growth to be EPS driven instead of multiple expansion, p.6
