
The third quarter earnings season is looming, and analysts are projecting a fifth consecutive quarter of declining earnings for the companies in the S&P 500 index, with overall earnings expected to fall 0.9%. Revenue is expected to break its streak of six straight quarters of declines, with an increase of 2.3%. As seen below in Exhibit 1, the EPS growth estimate has fallen 2.9 percentage points since the beginning of the third quarter. Only one sector, Information Technology, has seen its EPS growth estimate rise over this period. Exhibit 1. S&P 500: Q3 2016 Earnings Growth Estimate & Change Since