Investors should brace for corporate profits to see their biggest drop since the start of the pandemic, Goldman Sachs says

• Goldman Sachs strategists say they expect corporate profits to see their steepest decline since 2020.

• There are only three sectors they expect to have seen expanded profit margins last quarter. 
• The vast majority of other industries will likely see their margins drop by over 200 basis points.

As markets head into first-quarter earnings season, Goldman Sachs strategists say corporate profits are set for their steepest decline since the start of the COVID-19 pandemic in 2020.

Earnings per share are expected to decline 7% year-over-year, according to a note from the bank published this week, along with a "significant deterioration" from the -1% year-over-year growth posted in the last three months of 2022.