CEOs and Analysts Are at Odds About S&P 500’s Earnings Outlook

There’s an unusual divergence in Corporate America’s profit outlook this season: while analysts have cut forecasts, company guidance points to another strong quarter.

Data compiled by Bloomberg Intelligence show analysts expect S&P 500 firms to report a 4.2% increase in third-quarter earnings versus a year earlier, down from a 7% forecast in mid-July. Guidance by the firms, on the other hand, implies a jump of about 16%.