Photo: The Joker
Deutsche Bank US equity strategist Binky Chadha expects Q3 earnings to beat current estimates by 2-4%.Among other things, he points to better-than-expected earnings from the early reporters.
He identifies two industries that could disappoint. But, he also thinks the market may have already set the bar low.
“The bottom-up consensus now sees S&P 500 EPS of $24.4, down 2.9% qoq in a seasonally weak Q3, on slightly lower sales and a decline in margins. Ex Financials and Energy earnings are expected to fall 2.8% qoq or 1% sa, which would be the first sa decline since the recession. Financials and Energy are wild cards but recent underperformance suggests that low expectations are priced in.”
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