This week has seen a little improvement in the expectation for third-quarter profits in the United States as several S&P 500 businesses, including Microsoft, reported better-than-expected results.
According to LSEG IBES statistics released on Wednesday, after reports from 146 of the S&P 500 businesses were in, total S&P 500 earnings are now predicted to have grown 2.6% in the third quarter compared to a year earlier.
That was more than the 1.7% gain that was predicted on Tuesday. The estimations for the remaining portion are based on estimates and the actual results from S&P 500 businesses that have disclosed.
Based on LSEG data, almost 80% of reports to date have surpassed analysts’ profit projections, compared with an average of 74% during the previous four reporting periods.
Microsoft’s quarterly earnings across all businesses were better than expected by Wall Street on Tuesday. As more clients look forward to utilising its artificial intelligence solutions, its PC and cloud computing businesses have grown.