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Third-quarter U.S. profit growth on track to be highest since 2010

Reuters  |  NEW YORK 

(Reuters) - U.S. earnings growth for companies in the third quarter is on track to be the highest since 2010, eclipsing the strong results from earlier this year, according to IBES data from Refinitiv.

Stronger-than-expected earnings have pushed the estimate for third-quarter growth to 27.4 percent, based on results from 381 of the companies and estimates for the rest.

The growth estimate is well above the 21.6 percent growth for the quarter forecast by analysts on Oct. 1, and it would surpass the first quarter's 26.6 percent growth and the second quarter's 24.9 percent growth, based on Refinitiv data.

The last time quarterly profit growth was higher was in the fourth quarter of 2010, when it was 37.2 percent.

Strong profit growth this year has been fuelled in part by the sweeping tax overhaul approved by late last year. But investors have been concerned about rising tariff and other costs for companies that could result in a bigger step down in profit growth next year than analysts are expecting. [nL2N1WO1GT]

Profit growth is expected to slow to 9 percent next year from an estimated 23.9 percent this year, according to Refinitiv data.

(Reporting by Caroline Valetkevitch; Editing by Dan Grebler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 06 2018. 02:50 IST
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