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Chicago, IL – January 25, 2024 – Zacks Director of Research Sheraz Mian says, "Total S&P 500 index earnings are currently expected to be up +0.6% from the year-earlier level on +2.3% higher revenues, which would follow the +3.8% earnings growth in 2023 Q3 on +2.0% higher revenues."
Breaking Down Q4 Earnings Season Scorecard
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Total Q4 earnings for the 83 S&P 500 members that have reported results are up +0.9% from the same period last year on +3.9% higher revenues, with 78.3% beating EPS estimates and 65.1% beating revenue estimates.
The Q4 earnings growth pace for these 83 index members is below what we had seen from this group of companies in other recent periods, while the 78.3% EPS beats percentage is tracking in-line with the 20-quarter average of 78.2%.
The revenue growth pace for this group of index members represents a deceleration relative to what we had seen from the group in other recent periods, while the 65.1% revenue beats percentage is below recent periods as well as the 20-quarter average of 69.1% for this group of 83 index members.
Looking at Q4 as a whole, combining the actual results that have come out with estimates for the still-to-come companies, total S&P 500 index earnings are currently expected to be up +0.6% from the year-earlier level on +2.3% higher revenues, which would follow the +3.8% earnings growth in 2023 Q3 on +2.0% higher revenues.
The ‘Big 7 Tech Players’ - Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) and others will start reporting Q4 results in the next few days. Total Q4 earnings for the group are expected to be up +38.3% from the same period last year on +12.5% higher revenues, which would follow the group’s +54.2% higher earnings on +12.9% higher revenues in 2023 Q3.
Beyond Big Tech, Q4 earnings for the S&P 500 index are currently expected to be up +0.6% above the year-earlier period on +2.3% higher revenues. This would follow the +3.8% increase in index earnings in 2023 Q3 on +2.0% higher revenues.
Given the expected moderation in the U.S. economy’s growth trajectory due to the cumulative effects of Fed tightening, these estimates likely need to come down. Some of that downward adjustment is already happening.
As we have noted before, full-year 2024 estimates started coming down in October, with the trend continuing in November and early December, but appear to have stabilized in recent weeks.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Earnings Trends Highlights: Amazon, Alphabet, Apple, Microsoft, Nvidia
For Immediate Release
Chicago, IL – January 25, 2024 – Zacks Director of Research Sheraz Mian says, "Total S&P 500 index earnings are currently expected to be up +0.6% from the year-earlier level on +2.3% higher revenues, which would follow the +3.8% earnings growth in 2023 Q3 on +2.0% higher revenues."
Breaking Down Q4 Earnings Season Scorecard
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
The ‘Big 7 Tech Players’ - Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) , Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Nvidia (NVDA - Free Report) and others will start reporting Q4 results in the next few days. Total Q4 earnings for the group are expected to be up +38.3% from the same period last year on +12.5% higher revenues, which would follow the group’s +54.2% higher earnings on +12.9% higher revenues in 2023 Q3.
Beyond Big Tech, Q4 earnings for the S&P 500 index are currently expected to be up +0.6% above the year-earlier period on +2.3% higher revenues. This would follow the +3.8% increase in index earnings in 2023 Q3 on +2.0% higher revenues.
Given the expected moderation in the U.S. economy’s growth trajectory due to the cumulative effects of Fed tightening, these estimates likely need to come down. Some of that downward adjustment is already happening.
As we have noted before, full-year 2024 estimates started coming down in October, with the trend continuing in November and early December, but appear to have stabilized in recent weeks.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.