Wall Street braces for earnings to get hit by inflation

By DAMIAN J. TROISE
AP Business Writer

NEW YORK (AP) — Wall Street expects companies to face a reckoning with the realities of hot inflation, a slowing economy and rising interest rates in the latest round of earnings results. Analysts are forecasting an earnings contraction of about 3.5% for the fourth quarter, according to FactSet. That estimate is an about-face from forecasts back in September of 3.5% growth and a sharp reversal from 8.5% growth forecasts in June. The dismal forecast for the fourth quarter follows is part of a trend of shrinking earnings growth throughout 2022 as inflation tightened its grip on consumers.