On the Minds of Investors
Top questions on the minds of investors
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October 28, 2020
Have 3Q20 earnings been better than expected?
After a sharp decline in economic activity during the first half of the year, the U.S. economy bounced back strongly in the third quarter. Against this backdrop, profit growth has come back nicely as well, with 3Q20 S&P 500 earnings per share expected to have grown 25.1% from the prior quarter. While this still leaves earnings down -14.9% year-over-year, results have generally been better than expected. With 26.4% of companies reporting, our current estimate for 3Q20 S&P 500 operating earnings per share is 33.87 USD; so far, 83% of companies have beaten earnings estimates and 77% of companies have beaten revenue estimates, both of which are well above long-run averages.
3Q20 earnings reports have been better than expected
Share of reported companies beating estimates by sector
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. Data are as of October 27, 2020.