S&P 500 Net Margin Drops For 7th Consecutive Quarters, With IT Leading and Energy Lagging
The blended net profit margin for the $S&P 500(.SPX)$ in Q3 2023 is 11.6%, which is lower than the year-ago net profit margin of 11.9%, but is equal to the previous quarter (Q2 2023) at 11.6%.
This marks the seventh consecutive quarter with a year-over-year decline in net profit margin.
data from factset
Divided Net Margins In Different Sectors
Six sectors, led by Communication Services(12.2%), $Communication Services Select Sector SPDR Fund(XLC)$ report higher net profit margins in Q3 2023 compared to Q3 2022.
Five sectors, notably Energy(11%) $Energy Select Sector SPDR Fund(XLE)$ and Health Care(8.1%) $Health Care Select Sector SPDR Fund(XLV)$ , report lower net profit margins in Q3 2023 compared to the same period in 2022.
data from factset
Quarter-over-Quarter Changes in Sectors
Five sectors, with Utilities(14.2%) $Utilities Select Sector SPDR Fund(XLU)$ leading, report a quarter-over-quarter increase in net profit margins in Q3 2023 compared to Q2 2023.
Five sectors, including Real Estate (35.2% vs. 37.3%) $Real Estate Select Sector SPDR Fund(XLRE)$ and Materials (9.7% vs. 11.8%) $Materials Select Sector SPDR Fund(XLB)$ , report a quarter-over-quarter decrease in net profit margins.
data from factset
Future Projections
Analysts anticipate an increase in net profit margins for the S&P 500 in the first half of 2024.
Estimated net profit margins for upcoming periods: Q4 2023 (11.5%), Q1 2024 (12.0%), and Q2 2024 (12.3%).
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