Preview of 23/3Q financial results for major US S&P 500 companies

Weekend 13, $JPMorgan (JPM.US)$ 、 $Wells Fargo & Co (WFC.US)$ Starting with the 3Q earnings announcement, major S&P 500 companies will enter the 3Q earnings season. According to the factset summary (as of 10/6), it was shown that the predicted EPS for the S&P 500 type 23 3Q fell 0.3% from the same period last year, and that profit would decline for the fourth consecutive quarter. Looking at performance momentum, it is likely that the 2Q fiscal year 23 will be the bottom, with profit falling 5.4% in the 22/4th quarter, the same 3.4% decrease in profit in the 23rd quarter, and the same 7.1% decrease in profit in 2'23. Currently, upward revisions to EPS predictions have been made one after another, mainly by major US tech companies. Since the predicted EPS of the US IT sector has only increased by 4.6%, along with the announcement of profit increase financial results by major US tech companies, there is also a possibility that the 23-quarter results of major US S&P 500 companies will turn into a positive zone for the first time in 4 quarters. Incidentally, according to the EPS forecast for 23/4Q and onwards, a scenario is drawn where profit for the 23/4th quarter increased by the same 7.8%, and compared to the same 2.4% increase in profit for the full year of '23, the same 12.2% increase in profit for the full year of '24, and the same 12.2% increase in profit for the full year of '23, and for major US companies. The profit growth trend of major US companies seems to be a reassuring reinforcement for the US economy toward a soft landing.

Looking at the EPS outlook for the 3rd quarter of '23 by sector, $Meta Platforms (META.US)$ Driven by, the telecommunications sector is the highest, with a 31.5% increase in profit from the same period last year. In 2nd place, $Amazon (AMZN.US)$ Driven by, the general consumer goods sector (same 22.0% increase in profit) continues, and the same 12.5% increase in profit in the public service sector continues in 3rd place. Also, looking at changes in EPS forecasts by sector (compared to the end of June), the profit growth forecast for the general consumer goods sector rose from +12.5% as of the end of June to +22%. Of 52 companies in the general consumer goods sector, 28 moved to an upward revision of their EPS forecasts. Among them, 12 companies raised their EPS forecasts by 10% or more, with Amazon (from 0.41 dollars to 0.57 dollars) leading the way, $D.R. Horton (DHI.US)$ (DHI = $2.95 to $3.93), followed by Prut Group (PHM = $2.17 to $2.83).