According to Standard & Poor’s, only three of 10 S&P sectors are expected to post positive earnings growth for the fourth quarter, with telecommunications (17.9%) consumer discretionary (7.5%) and healthcare (5.6%) once again leading. We take a look at earnings forecasts of our various holdings in these sectors.

In telecommunications, Conservative Portfolio Holding AT&T (NYSE: T) completed its acquisition of satellite TV provider DirecTV and has begun reporting impressive earnings. Last quarter revenues grew to $39.1 billion, nearly 19% year-over-year, as a result of the acquisition that has made the firm’s pay-tv business increasingly profitable.

In fact, in the last quarter, management crowed that, “Our EBITDA margins came in at more than 22%, that’s up more than 800 basis points year-over-year. Essentially, we have converted our quality video business with limited scale into an industry leader, earning solid margins through our DIRECTV acquisition.”

Furthermore,  analysts have high hopes that AT&T will be able to cash in on merging its other businesses with its DIRECTV acquisition to attract new customers, and the firm recently rolled out its unlimited wireless data plans in early January, not seen in over five years, to do just that.

According to a Wall Street Journal report, the new plans are only available to customers who subscribe to DirecTV, or its older U-verse TV Service.  As pointed out in the WSJ report, offering services is a better way to preserve margins than what some telecom companies have done: simply cutting prices to stay competitive. S&P Capital IQ full year consensus estimates are for $2.77 per share for 2016 from $2.64 for 2015. T is a Buy up to $38

In consumer discretionary, new Conservative Portfolio holding Luxottica (NYSE: LUX) is breaking all kinds of earnings records in 2015. In terms of cash flow, LUX reported a record quarter in late October. The firm generated €396 million euros ($429 million dollars) of free cash flow as a result of growth in adjusted sales.

The firm has had hyper growth in North America (up 22.8%) and in Europe (up 9%), where there was double digit sales growth in Italy, Spain, Germany and U.K.  The firm still managed to eke out sales growth in the volatile Asia-Pacific (up 3.2%) as well as Latin America (up 13.6%).

Apparently, the world puts a premium on looking cool, and the maker of Ray-Ban and Oakley sunglasses is on a roll as a result. And its Lenscrafters and Sunglass Hut stores have also been contributing to an improved bottom line. S&P Capital IQ full year consensus estimates are for $2.11 in FY2016 from $1.88 in FY2015. LUX is a Buy up to $70

In healthcare, Conservative Portfolio Holding Merck & Co. (NYSE: MRK) raised its earnings guidance for full year 2015 to between $3.55 and $3.60 per share on revenues of $39.2 to $39.8 billion. This though last quarter’s revenues were down almost 5% as a result of currency issues and the divestiture of its Consumer Care business and various other products.

The company continues to make strides in building out its new drug pipeline, as well as initiatives to find treatments for diseases and solutions to unmet medical needs.

The firm announced in early January its acquisition of IOmet, a privately held U.K.-based drug discovery company focused on the development of medicines for the treatment of cancer. It has an emphasis on the fields of cancer immunotherapy and cancer metabolism. The acquisition followed on the heels of the addition of the Cubist portfolio acquisition in hospital acute care, which was announced in the last quarter. 

S&P Capital IQ full year consensus estimates are for $3.78 in FY2016 from $3.50 in FY2015. MRK is a Buy up to $65.