- Next month sees the start of the Q3 earnings season – we expect expectations to be broadly beaten.
- In the run up to earnings releases we typically see estimates revised downwards – that trend has been bucked, especially in the technology and consumer discretionary sectors.
- Earnings have fared better than many expected this year, with profit margins remaining resilient. Robust consumer spending has helped.
- We assess some of the other factors set to influence earnings from here, including higher borrowing costs.