Goldman lowered its S&P 500 earnings estimates

As it expects possible difficulties in the nearest future connected to margins contraction that was registered over the third quarter, the S&P 500 earnings estimates were lowered by Goldman Sachs Group Inc. for the following years up to 2024.

The margins contraction registered over the previous quarter has become the first one after the initial COVID outbreak, and it is considered to be an important event for further forecasting and estimating, especially for the upcoming year. At the moment, the Goldman strategists are forecasting the earnings to remain at current levels next year, while the previous estimation showed an expected growth by 3%.

According to the strategists’ opinion, there are even higher risks of possible decline, even though the forecasts have already been lowered significantly. Those risks are related to a possible decrease of the S&P 500 Index’s earnings per share by additional 11% in case a recession happens.