Ask Matt: Which sectors will flourish during earnings season?

Q: Which sector will flourish during earnings season?

A: Big banks kick off third-quarter earnings season Friday. It’s an important moment, since investors are counting on some big numbers from the financial sector.

Overall, the third quarter wasn’t a great one for corporate profit. Companies are expected to report lower 0.9% lower profit in the third quarter, making it the fifth decline in a row, says S&P Global Market Intelligence. The decline in profit is largely due to the expected 68% decline in energy sector profits.

Making up the huge decline in profit on the oil patch is a tall order for the other 10 sectors. Financials are seen posting 5.9% higher adjusted profit, which makes the sector the second-largest source of earnings growth. But it’s the materials sector that is expected to be the earnings growth powerhouse, with analysts calling for 8.4% higher profit during the quarter.

Stability in some commodity prices is giving the sector a lift. Consumer staples companies are the third largest source of growth, seeing putting up 4.3% expected growth. ConAgra Foods (CAG), a food processor, is seen posting 36% higher quarterly earnings growth.

These are just estimates, so investors will have to wait a few week to see reality set in.

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.