Here Comes Another Earnings Season

Now’s a good time to review how Q4 earnings reports may affect the forward earnings that investors focus on. While Q4 results don’t go into the forward earnings calculation, what managements report on Q4 conference calls can skew forward earnings in either direction by altering analysts’ expectations for the future. … Analysts have already shaved their collective Q4 estimates for the S&P 500 by 6% since early October. We expect their pre-season expectations to be exceeded again; Q3 results had a 4.5% upside surprise. ... Like the analysts, we remain bullish on earnings in 2024 and 2025. ... Also: Joe does a deep dive into Q4 earnings growth expectations from various perspectives.