Third-quarter S&P 500 earnings reporting season — kicking into high gear now — will largely be a snooze. But there are some giant exceptions.
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Twelve companies, including Royal Caribbean Cruises (RCL), Nvidia (NVDA) and Walt Disney (DIS), are expected to post quarterly profit that’s at least double year-ago levels, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. Some are seen putting up 200%, 300% or even 1,200% year-over-year quarterly growth.
And that’s good news in what’s likely to be a lackluster third-quarter for S&P 500 earnings growth. The whole S&P 500’s profit is only expected to rise a scant 0.4% in the third quarter. And even that’s better than analysts feared a month ago.
“Considering the index’s demonstrated history to surpass earnings-per-share expectations by approximately 3%, investors are hopeful that a return to (profit growth) can help support equity prices during this challenging geopolitical environment,” said John Lynch, chief investment officer at Comerica.
More Profit Growth Than Nvidia?
AI sensation Nvidia’s third-quarter earnings report will likely be something to behold. But it has some competition.
Analysts think the company will make $3.35 a share on an adjusted basis. And if that’s spot on, it means the company’s bottom line will have grown an impressive 478% in the period. Solid results are completely expected by investors who pushed shares up 199% already this year.
But as strong as Nvidia’s expected third-quarter profit growth will likely be, it’s likely not going to be the strongest. Thanks to its bounce back from a near shutdown in its business during the pandemic, Royal Caribbean Cruises is seen putting up 1,209% growth in adjusted quarterly profit. That’s if the company winds up earning $3.35 a share as expected, up from just 58 cents a share in the third quarter of 2022.
Disney’s Comeback Starts Now?
Walt Disney, the company, may have just turned 100 years old. But its investors are getting impatient.
Shares of the media giant are down more than 1% this year, lagging the S&P 500. But there’s some blockbuster growth to look forward to very soon. Disney analysts think the company will earn 73 cents a share in the third calendar quarter, up 144% from the same year-ago period. The company is expected to report third-quarter results on Nov. 8.
It’s still early in the reporting season, and most of the S&P 500 heavy hitters are still due to report. But analysts think they know ahead of time where the profit fireworks will come from.
Biggest Third-Quarter S&P 500 Profit Growth Expected
| Company | Ticker | Third-quarter EPS gain* | Sector |
|---|---|---|---|
| Royal Caribbean Cruises | (RCL) | 1,209.4% | Consumer Discretionary |
| Nvidia | (NVDA) | 478.1 | Information Technology |
| Arch Capital | (ACGL) | 461.4 | Financials |
| Progressive | (PGR) | 221.1 | Financials |
| Welltower | (WELL) | 217.8 | Real Estate |
| Alexandria Real Estate Equities | (ARE) | 151.5 | Real Estate |
| Constellation Energy | (CEG) | 148.5 | Utilities |
| Walt Disney | (DIS) | 144.3 | Communication Services |
| Assurant | (AIZ) | 142.4 | Financials |
| American International Group | (AIG) | 124.5 | Financials |
| Meta Platforms | (META) | 119.7 | Communication Services |
| Amazon.com | (AMZN) | 107.3 | Consumer Discretionary |
Source: IBD, S&P Global Market Intelligence, *-estimate
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