Key Points:
- Median 4% sales and 3% EPS growth expected for S&P 500. 3% sales and -2% EPS for S&P 600.
- Fourth quarter of median earnings deceleration for the S&P 500 expected. Sales expected flat from last two quarters, which matches lowest in seven quarters.
- Notably, the trend of lower estimates has been happening for several quarters and is not abating. Since May, S&P 500 Q3/Q4 2019 and Q1/Q2 2020 estimates have all come down substantially. This is true even after a 3% earnings beat in Q2. But, full-year 2020 numbers (black line) have not come down much. This likely means a further revision lower is necessary.
