Q3 earnings season opens with the Banks as YoY Growth Estimates Near 30%
Big banks and AI hardware take the earnings spotlight. With forecasts falling for key names and the 10-year Treasury yield at 5.30%, can S&P 500 earnings deliver nearly 30% growth? Explore what’s at stake.
Big-bank reporting opens on October 13, with consensus for Goldman Sachs, Bank of America and Morgan Stanley cut after mid-September guidance, and ASML and TSMC follow on October 14 and 15 as the first read on AI hardware, where ASML's consensus is down 3% in four weeks.
S&P 500 EPS growth is expected near 30%, which would be a third straight quarter above 25% and compares with 27.6% at the start of July, but it rests on Energy and semiconductors, and a 10-year Treasury yield of 5.30% raises the bar for valuations. Among the banks, Goldman Sachs's EPS consensus has fallen 16% in four weeks and Bank of America's 7%, while JPMorgan's has risen 1%.