Energy leads group of 5 S&P 500 sectors set for EPS drop in Q3 results

Five of the S&P 500's 11 sectors are expected record cumulative year-over-year declines in third-quarter normalized earnings per share, according to an analysis of S&P Global Market Intelligence data.

Among the sectors with EPS forecasted drops, analysts expect energy to post the steepest year-over-year loss with a 25.4% decrease, followed by the real estate sector with a 7.7% fall. The consumer discretionary, industrials and materials sectors stand to record more modest losses.

The information technology sector is forecast to see the biggest gain in EPS for the third quarter, with a 14.20% increase year over year. Defensive sectors such as healthcare and utilities are also expected to report EPS growth of 12.7% and 7.3%, respectively.

Cumulative EPS for all S&P 500 companies in the third quarter could increase by about 2.7% year over year, a more modest rise from the 8.7% gain in the second quarter. Most S&P 500 earnings will be reported later in the month and into November, though some major constituents such as PepsiCo Inc., JPMorgan Chase & Co. and Wells Fargo & Co. have already released their results.

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Largest EPS gains, losses

Eli Lilly and Co. is poised to report the biggest year-over-year improvement in EPS year among all S&P 500 companies, according to early October analyst predictions. The pharmaceutical company during the third quarter--> announced it increased patient access to one of its prescription obesity medications at lower prices than competitor products.