As the third-quarter earnings season progresses, companies are expected to beat estimates due to significantly lowered expectations. Analysts have revised down S&P 500 earnings estimates by 5% over the last three months, setting a low bar for companies. So far, 30 S&P 500 firms have reported results, beating earnings consensus by an average of 5%, according to Bank of America. Bloomberg Intelligence data shows analysts expect a 4.2% increase in third-quarter earnings, although company guidance suggests a potential 16% increase. Early signs indicate tailwinds from easing rate pressures and the easing cycle, contributing to better-than-expected earnings performance. This is down from a 7% forecast in mid-July.