Q4 2021. What the S&P 500 companies are forecasting for Q4 earnings

According to FactSet, for the first time since the second quarter of 2020, more S&P 500 companies are releasing negative earnings per share forecasts.

According to the latest data, 93 companies in the S&P 500 issued EPS forecasts for Q4 2021, slightly below the five-year average of 100. Of those, 56 published negative EPS forecasts and 37 published positive EPS forecasts. The number of companies posting negative EPS forecasts is below the five-year average of 60. The number of companies issuing positive EPS forecasts is also lower at 40.

The number of S&P 500 companies issuing negative EPS forecasts for Q4 2021 was the highest since Q1 2020. – 61. On the other hand, the number of S&P 500 companies issuing positive EPS forecasts was the lowest since Q2 2020. – 25.

At the industry level, the information technology and industrial sectors saw the largest increase in the number of companies that published a negative EPS forecast for Q4 2021 compared to Q3 2021. Conversely, the information technology and consumer staples sectors saw the largest decrease in the number of companies that published a positive EPS forecast for Q4 2021 compared to Q3 2021.

It should be noted that over long observation periods, more negative EPS forecasts are typically issued than positive ones. That said, negative and positive EPS forecasts for Q4 2021 are equal to the five-year averages for S&P 500 companies.
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