While the Q3 earnings season has been overwhelmed by the focus of investors on the U.S. election (see the latest), a look back by Bank of America shows that 67% of S&P 500 companies have beaten estimates on both the top and bottom line. That tally is well above the average of 38% of double beats and would be the strongest proportion since Reg. FD.
The firm notes that small caps smashed it, with the S&P SmallCap 600 index Q3 earnings besting consensus expectations by 50%, driven by Consumer Discretionary, Financials and Industrials.
It’s a shame we may have to wait until 2024 to get this kind of Trump winning again on economy.