3Q Earnings Weren’t Bad. But 2023 Estimates Could Be Ugly.

Wall Street expected 2023 earnings forecasts to drop after third-quarter results came in. That time has come. With companies that account for some 90% of the S&P 500’s market capitalization having reported, third-quarter earnings per share have beaten analysts’ expectations by about 3%—a relatively low figure—says Credit Suisse.

It could get worse. Inflation has clearly hurt the consumer-spending outlook.


S&P 500


consumer-discretionary stocks have seen 2023 EPS forecasts fall by 15% in the past six months, says FactSet. Sectors such as manufacturing and tech also are hurting. Historically, next-year S&P 500 expectations drop by 10%, on average, in the second half.