With Corporate America’s earnings season nearing an end, the takeaway is clear: Challenges remain, but for a broad swath of companies the worst of the profit pain is likely over as margin-shredding inflation pressures ease.
The bad news: S&P 500 Index companies are on track to notch a third straight quarter of profit declines, with per-share earnings down 7% after more than 80% of the guage’s members have reported. The good: the earnings outlook is getting better. Profit growth, excluding the energy sector, is forecast to return in the current quarter, Bloomberg Intelligence data show.