Updated January 13th, 2024 at 13:36 IST
S&P 500 companies indicate 4.4% earnings growth in Q4
Major US banks, including JPMorgan, Wells Fargo, Bank of America, and Citigroup, reported lower profits in the latest quarter
- 2 min read
US Q4 corporate earnings: As the latest US earnings season takes off, data from LSEG indicates that S&P 500 companies are poised to witness a 4.4 per cent increase in fourth-quarter earnings compared to the same period last year. The projection slightly moderates from the 5.2 per cent estimate recorded on December 22, following a robust 7.5 per cent surge in the third quarter and a 2.8 per cent dip in the second quarter of 2023.
According to UBS equity strategist Jonathan Golub, the third quarter of 2023 marked the initiation of an earnings recovery, and forecasts indicate a further acceleration throughout 2024. However, there have been weaker revisions in fourth-quarter estimates compared to historical trends.
Major US banks, including JPMorgan, Wells Fargo, Bank of America, and Citigroup, reported lower profits in the latest quarter due to special charges and job cuts. Despite this, they noted that American consumers exhibited resilience, although defaults on consumer loans were returning to pre-pandemic levels.
JPMorgan, even with a dip in quarterly profit, announced its best-ever annual profit and projected higher-than-expected interest income for 2024. Looking ahead, companies such as Goldman Sachs, Morgan Stanley, and Travelers Cos. are set to report their earnings in the coming week.
Analysts are eyeing an 11 per cent rise in S&P 500 earnings for 2024 after a modest 2.9 per cent increase in 2023, according to LSEG data. The fourth-quarter earnings season unfolds amid evolving economic conditions and will be closely scrutinized for insights into the trajectory of corporate performance in the year ahead.
(With Reuters inputs)
Published January 13th, 2024 at 13:36 IST
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