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Earnings growth will start to pick up, expert says

Earnings expectations for Q3

Despite Alcoa's earnings miss and warnings from some big names about expectations, overall earnings growth is going to start to accelerate, Bespoke Investment Group co-founder Paul Hickey said Wednesday.

"I think we've seen the trough in earnings," he told CNBC's "Power Lunch."

While the earnings recession is expected to end this quarter, Alcoa kicked things off on Tuesday by missing estimates on both earnings and revenue. The firm reported revenues of $5.21 billion and earnings per share of 32 cents. Analysts had expected sales of $5.31 billion and profits of 35 cents per share, according to a consensus estimate by Thomson Reuters.

Plus, three large industrial firms, Dover, Honeywell and PPG, have recently lowered earnings and revenue estimates.

But Hickey said there have been fewer earnings warnings coming into this season compared with prior quarters heading into the third-quarter earnings period.

"You always see some high-profile names giving an earnings warning because there's 500 companies in the S&P 500," he said. "So some of those are going to warn every year and they make the headlines."

He also pointed out that the industrial sector has been an area of weak earnings since mid-2015. Technology, however, is expected to show strong earnings growth this season, he pointed out.

Meanwhile, energy may surprise to the upside. While it has been one of the most negative sectors when it comes to earnings revisions, oil is at a 52-week high, Hickey said.

— CNBC's Berkeley Lovelace contributed to this report.