Portfolio manager 'not as bearish as Street' on Q4 earnings

STORY: Earnings season kicks off this week with the major U.S. banks, with the Street fearing no year-on-year growth at all in overall earnings.

"Excluding Energy, S&P 500 EPS (earnings per share) is expected to fall 5%, driven by 134 bp of margin compression," wrote analysts at Goldman Sachs. "Entering reporting season, earnings revision sentiment is negative relative to history.

"We expect further downward revisions to consensus 2023 EPS forecasts," they added. "China reopening is one upside risk to 2023 EPS, but margin pressures, taxes, and recession present greater downside risks."