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During the third quarter 2023 of the corporate earnings season, 82% of companies within the S&P 500 index reported earnings above expectations and 62% reported better than expected revenues. However, the outlook for the fourth quarter has been less robust according to Factset. Although 52% of companies issued guidance above consensus, fourth quarter earnings estimates for S&P 500 member companies have been reduced by 5.3% since September 30, versus a five-year average of a 3.5% reduction at this point in the quarter. Notably, analyst accolades have fallen more sharply. According to Bloomberg document search, congratulatory remarks made on or during company earnings conference calls are down 21% year-to-date.

Source: Bloomberg, December 2023