A clear trend has emerged within the energy sector, consistent negative earnings and revenue forecasts for the S&P 500’s oil & gas exploration & production (E&P) sub-industry. The group continues to face a weak pricing environment and is expected to stop the exponential production growth. Exhibit 1: S&P 500 E&P YoY Growth Rates vs. Net Profit Margin Analyst estimates for E&P’s 19Q3 aggregated earnings have fallen 20.1% since July 1 and revenue expectations have come down 9.0%. As a result, the outlook for 19Q3 YoY earnings are down 15.1 percentage points (ppts) to a decline of 39.5% and revenue fell

Click here to view the dashboard in detail. Aggregate Estimates and Revisions Third quarter earnings are expected to increase 2.6% from Q3 2015. Excluding the energy sector, the earnings growth estimate improves to 6.4%. Of the 248 companies in the S&P 500 that have reported earnings to date for Q3 2016, 73.4% have reported earnings above analyst expectations. This is above the long-term average of 64% and above the average over the past four quarters of 70%. The Q3 2016 blended revenue growth estimate is 2.7%. Excluding the energy sector, the revenue growth estimate increases to 4.5%. 58% of companies have reported Q3 2016 revenue