“Overall in tech, we’re looking for about 3 percent as well, but if you remove Apple, that growth rate drops down to a decline of about 2.5 percent,” he said.
Although this quarter and the third quarter likely will not be earnings homeruns, markets will be paying close attention to fourth-quarter guidance.
In that quarter, analysts expect a rebound of nearly 14 percent earnings growth, with double-digit growth in a number of sectors.
Butters noted another trend in earnings of higher revenue growth than earnings growth due to higher labor and marketing costs.
“Seven of the 10 sectors in the index are projected to report higher revenue growth than earnings growth for the quarter, which indicates that companies are having difficulty converting sales growth to earnings growth in (the second quarter of) 2012,” the report noted.
—By CNBC.com’s Katie Little
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Disclosure information was not available for John Butters.
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