Energy 'Biggest Drag' on Earnings Growth, Analyst Bell Tells CNBC

The energy sector will be responsible for the expected negative earnings growth this quarter, S&P Global Market Intelligence analyst Lindsey Bell said on CNBC today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- As earnings season trails on S&P Global Market Intelligence analyst Lindsey Bell predicts a negative earnings growth due to the under performing energy sector, she said on CNBC's "Squawk Box" Monday.

"Taking a look at earnings this week as over 200 names are set to report from the Dow [Jones] and S&P 500. Are we finally going to have positive earnings growth this quarter?" Michelle Caruso-Cabrera asked.

"Well I think we're going to get close but not quite there," Bell replied.

Typically, a quarter beats when it hits 350 to 400 basis points and currently Bell estimated a 3.7% growth decrease for the current quarter.

"Energy is still the biggest drag. I mean an 80% decline in earnings growth isn't going to help the index at all," Bell explained.

Excluding the energy sector, growth will be positive by 1%, she commented.

Meanwhile, industrials, technology and consumer discretionary have been leading "with big beats," Bell noted.

The energy sector is expected to see a 1% growth by the end of the year, she added.

The iShares Dow Jones US Energy Sector ETF (IYE) is down by 1.25% to $37.84 this morning.

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