Moving On To Q3 Earnings

Moving On To Q3 Earnings

By Bespoke Investing Group | 31 August 2009

Now that the second quarter earnings season is behind us, we look ahead to the third quarter to see where expectations stand. Below we highlight the consensus estimate for Q3 year-over-year earnings growth for the S&P 500 and its ten sectors. As shown below, the Financial sector is expected to see earnings grow by a whopping 617.8% from Q3 '08 to Q3 '09! For those that remember Q3 '08, it wasn't a pretty sight for the Financials, so the starting point shouldn't be too tough a number to grow on.

But 617.8% is still nothing to laugh it, and it is indicative of the significant turnaround the Financials have seen in less than a year. The S&P 500 as a whole is expected to see earnings decline by 21.8% in the third quarter. Consumer Discretionary is the only other sector expected to see year-over-year growth in the third quarter. Materials and Energy have the worst estimates at -69.2% and -66.7%, respectively.

Estinated Q3 '09 S&P 500 Earnings Growth

Top Performing Financial Stocks Year To Date

The average stock in the S&P 500 Financial sector is up 17.28% year to date. For those interested, below we provide a list of the top 25 performing stocks in the sector in 2009. As shown, XL Capital, Genworth Financial, and CB Richard Ellis are all up more than 100% year to date, and just after them come the big boys— Goldman Sachs, Morgan Stanley, and American Express. The bounce that these Financials have seen since their March lows is almost as extreme as the declines they saw in 2008 and early 2009— almost.