S&P 500 profit forecasts exceed expectations more often; AI cited as a factor
S&P 500 companies that have already issued third-quarter profit forecasts are providing earnings-per-share estimates above Wall Street expectations more often than usual. According to MarketWatch, such corporate optimism is partly linked to artificial intelligence.
72 forecasts above expectations
According to FactSet, as of the report's publication, 114 companies in the S&P 500 had provided third-quarter forecasts. Of these, 72 issued earnings-per-share guidance that exceeded Wall Street estimates.
Over the past five years, the average number of companies with such forecasts was 43. Therefore, the current figure of 72 companies is significantly higher than the average level for this period.
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Information technology sector stands out
The information technology sector stands out for the number of optimistic earnings guidance forecasts. The headline of the MarketWatch article names artificial intelligence as one of the significant factors behind the unusually high number of forecasts exceeding market expectations.
The next corporate earnings season is approaching amid more optimistic company expectations. At the same time, according to the publication, their executives are somewhat less focused on inflation.
