Mar 04, 2015 | Post by: Roman Chuyan, CFA Comments Off on Earnings Slowed in Q4, Expected To Fall in Q1

Earnings Slowed in Q4, Expected To Fall in Q1

Q4-2014 S&P 500 earnings growth was sluggish at 3.7% YoY – a significant slowdown from around 8% growth in Q2 and Q3. The Energy sector was primarily responsible for lower earnings due to the drop in oil price. Earnings grew by 5% for the full year 2014.

SP500 earnings - tactical investment management






Looking ahead, according to Factset, earnings are expected to fall by 4% YoY in Q1. The Energy sector is responsible for the bulk of this loss – earnings for the sector are expected to decline by over 60% in Q1 compared with the same quarter last year. Analysts expect all other sectors to report positive growth for calendar year 2015, but earnings growth for the S&P 500 overall is expected to slow down even further to 3% in 2015.

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