US Profits Set for Pandemic-Sized Drop, Goldman Strategists Say
- Only three sectors to see margins expand this reporting season
- Investors to focus on margin outlook, AI, cash use, China: GS
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The approaching US earnings season is expected to be the gloomiest since the pandemic, according to Goldman Sachs Group Inc. strategists.
Analyst consensus expectations are for S&P 500 earnings-per-share to fall 7% in the first quarter from a year earlier, marking the sharpest decline since the third quarter of 2020 and a low point in the profit cycle, strategists including Lily Calcagnini and David Kostin wrote in a note. “If analyst projections are realized, this quarter will represent the trough in S&P 500 earnings growth.”