In their earnings releases and conference calls, a number of companies have cited the negative impact of the stronger dollar on both results for the third quarter and expected results for the fourth quarter. Comments from companies regarding Europe have generally been mixed, while comments regarding China have generally been positive. Looking at forward estimates, analysts are projecting much higher earnings growth in first half of 2015 compared to Q3 2014 and Q4 2014. However, they are not predicting a substantial improvement in revenue growth, which implies that net margins are expected to increase in future quarters as well. Companies have begun to lower expectations for the fourth quarter, as 29 companies in the index have issued negative EPS guidance while 8 companies have issued positive EPS guidance. With the recent uptick in the market this past week, the forward 12-month P/E ratio is now 15.2, which is still above the 5-year and 10-year averages. The upcoming week marks the third peek week of the Q3 2014 earnings season, as 159 S&P 500 companies are scheduled to report results for the third quarter. Six of these companies are Dow 30 components
