TSX Q4/17 EPS is expected to come in at $242, up 6.6% from Q3/17 and 11% higher on a year-over-year basis. As a reference, S&P 500 Q4/17 EPS growth is expected to hit 4.2% QoQ and 11% YoY. Canadian profits have been recovering since mid-2016, and TSX 12M trailing EPS should reach $897 in Q4/17 (up +16% from Q4/16). Profit margins are expected to improve but remain below past cycle highs. Sequential EPS momentum is projected to rebound the most in Utilities (seasonal), Energy, Discretionary, and Materials, but Transport, Staples, and Telecom profitability is expected to lag.