Key Points for the Upcoming Q3 2024 Earnings Season

Earnings Season Kickoff

• The Q3 2024 earnings season is gearing up, with financial heavyweights like JPMorgan Chase and Wells Fargo set to unveil their earnings on October 11, 2024.

Economic Context

• Investors are on the lookout for earnings outcomes that will validate the current optimistic economic data and provide hints if the US economy is gracefully gliding towards a soft landing.

Expectations and Themes

• Expectations for Q3 S&P 500 EPS growth hover around 4.2%, marking the fifth quarter of continuous growth. Lowered anticipations might just set the stage for electrifying beats in revenue and earnings.
• Hot topics during earnings calls are likely to revolve around the turbulent US presidential election, unfolding tensions in the Middle East, and the Federal Reserve’s prospective November 7 rate cut, which has tickled investors’ curiosity.

Sector Performance

• For Q3, Financials, Materials, and Energy aren’t in for a rosy ride, with expectations of a decline in EPS compared to last year. Banks are taking the lion’s share of this downturn with an anticipated 12% YoY plunge.

Peak Earnings Weeks

• The earnings season will surge between October 28 and November 15, with November 7 stealing the spotlight as over 1,475 companies are primed to report their earnings.

Forward-Looking Guidance

• Firms that manage to surpass both revenue and profit expectations while offering upbeat guidance for Q4 and/or CY 2025 will likely bask in investor acclaim.

Market Dynamics

• The earnings season doesn’t have the stage to itself—it’s sharing the spotlight with the upcoming US presidential election and the Fed’s impending monetary maneuvers, keeping investors on their toes.

As we dive into the Q3 2024 earnings season, buckle up for what promises to be a thrilling ride of financial performances and forecasts. Remember, in the theater of the stock market, the plot is as gripping as it is unpredictable.