The largest quarterly growth in US firm profits in over a year is anticipated

 The largest quarterly growth in US firm profits in over a year is anticipated

According to LSEG statistics released on November 10, total third-quarter profits are anticipated to have grown 6.3% from the same time last year, with reports in from almost all of the S&P 500 businesses.

Since the end of October, stocks have increased, and on November 10, the S&P 500 reached its highest intraday level since September 20.

After a large number of S&P 500 businesses exceeded Wall Street projections, US corporations are expected to post their largest year-over-year growth in quarterly profits since the second quarter of 2022.

According to LSEG statistics released on November 10, total third-quarter profits are anticipated to have grown 6.3% from the same time last year, with reports in from almost all of the S&P 500 businesses.

That is far more than the 1.6 percent third-quarter earnings rise that experts had predicted on October 1st.

As reported by LSEG, 81.3 percent of the quarterly reports outperformed analysts' projected profits, marking the greatest beat rate since 2021's second quarter.

Indeed, experts have been lowering their expectations for the S&P 500's fourth quarter. According to the statistics, profits for the current quarter are now projected to increase by only 5.8% over the previous year, as opposed to an initial growth of 11%.

With ninety percent of technology reports coming in above analysts' earnings predictions and eighty-nine percent of communication services reports exceeding expectations, technology and communication services have the greatest beat rates for the third-quarter earnings season among the eleven S&P 500 sectors.

Among the well-known S&P 500 firms that outperformed forecasts was Microsoft, whose PC and cloud computing divisions are expanding as more consumers look forward to using its artificial intelligence products.

A steep increase in US Treasury rates and a 2.8 percent year-over-year decrease in S&P 500 profits in the second quarter had investors concerned about third-quarter US earnings.

Since the end of October, stocks have increased, and on November 10, the S&P 500 reached its highest intraday level since September 20.