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Tesla, Microsoft, Meta Platforms and Apple are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – January 27, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list Tesla (TSLA - Free Report) , Microsoft (MSFT - Free Report) , Meta Platforms (META - Free Report) and Apple (AAPL - Free Report) .
Mag 7 Earnings on Deck: A Closer Look
This week takes us into the heart of the Q4 earnings season, with more than 300 companies reporting results, including four Magnificent 7 members and 96 other S&P 500 members. We have Tesla, Microsoft and Meta Platforms on Wednesday, January 29th, and Apple on Thursday, January 30th.
Apple shares have struggled lately, with the stock lagging behind the Mag 7 group and the broader market. The stock hit the 52-week high around Christmas and has since lost about 15% of its value on persistent worries about China and its AI strategy.
The bounce in Tesla shares has more than made up for the market's disappointment with the Robo taxi announcement. Apple is the Mag 7 laggard this year.
Tesla shares have truly been on a tear since the last quarterly release on October 23rd, with the stock up more than +85% since the day before that release. Market participants appear convinced that Tesla's competitive challenges are behind it. We will see if this Wednesday's quarterly release validates this view.
The very positive sentiment on Tesla contrasts the dour views on Apple where some of the more bearish analysts are projecting a guidance cut. While estimates for the December quarter have been stable lately, estimates for the current and following fiscal years have been under pressure. The current Zacks Consensus EPS for fiscal year 2025 (ends in September) for Apple of $7.40 is down from $7.43 a week ago and $7.49 three months back.
Apple bulls see this all-around downbeat sentiment as overdone. While they acknowledge the China headwinds, they believe that the issue is manageable for the company and expect Apple to announce a local AI partner in the next few months. Baidu appears to be the front-line candidate, but analysts also mention Tencent and TikTok parent ByteDance as in the running.
Unlike Tesla and Apple, the issue with Microsoft is the capex overhang, with the market concerned about the company's heavy investments in AI infrastructure without a tangible monetization plan.
The capex question isn't restricted to Microsoft alone, as Alphabet, Amazon, and Meta also face the same issue. Of these four, the problem is particularly central for Alphabet as many in the market see AI as potentially risking the company's search monopoly. Alphabet did a good job in its last earnings release on that front, but this will likely remain an ongoing issue in the Google story.
The group is expected to bring in +20.9% more earnings in Q4 relative to the same period last year on +12.2% higher revenues.
As we all know by now, the group's phenomenal boost in 2021 partly reflected pulled forward demand from future periods that got adjusted mostly in 2022. The group got back into 'regular/normal' growth mode in 2023, and the trend is expected to continue this year and beyond.
Q4 Earnings Season Scorecard
Through Friday, January 24th, we have seen Q4 results from 78 S&P 500 members, or 15.6% of the index's total membership. Total earnings for these companies are up +17.4% from the same period last year on +6.2% higher revenues, with 83.3% beating EPS estimates and 66.7% beating revenue estimates.
For the Finance sector, we now have 45.5% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +27.5% from the same period last year on +10.9% higher revenues, with all the companies beating EPS estimates (100%) and 80% surpassing revenue estimates.
Key Earnings Reports This Week
The 100 S&P 500 members on deck to report results this week include several blue-chip operators like Boeing, GM, Starbucks, IBM, Southwest Airlines, Comcast, International Paper, and others, in addition to the aforementioned Mag 7 players.
By the end of this week, we will have seen Q4 results from more than 35% of the index's total membership.
The Earnings Big Picture
Excluding contributions from the Mag 7 companies, S&P 500 earnings would have been up +5.7% on +3.8% higher revenues.
Please note that the very strong growth expected in 2025 is not driven by one or two sectors but is rather broad-based. All 16 Zacks sectors are expected to enjoy positive earnings growth in 2025, with 8 of the 16 Zacks sectors expected to achieve double-digit earnings growth.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
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/performancefor information about the performance numbers displayed in this press release.
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Tesla, Microsoft, Meta Platforms and Apple are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – January 27, 2025 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list Tesla (TSLA - Free Report) , Microsoft (MSFT - Free Report) , Meta Platforms (META - Free Report) and Apple (AAPL - Free Report) .
Mag 7 Earnings on Deck: A Closer Look
This week takes us into the heart of the Q4 earnings season, with more than 300 companies reporting results, including four Magnificent 7 members and 96 other S&P 500 members. We have Tesla, Microsoft and Meta Platforms on Wednesday, January 29th, and Apple on Thursday, January 30th.
Apple shares have struggled lately, with the stock lagging behind the Mag 7 group and the broader market. The stock hit the 52-week high around Christmas and has since lost about 15% of its value on persistent worries about China and its AI strategy.
The bounce in Tesla shares has more than made up for the market's disappointment with the Robo taxi announcement. Apple is the Mag 7 laggard this year.
Tesla shares have truly been on a tear since the last quarterly release on October 23rd, with the stock up more than +85% since the day before that release. Market participants appear convinced that Tesla's competitive challenges are behind it. We will see if this Wednesday's quarterly release validates this view.
The very positive sentiment on Tesla contrasts the dour views on Apple where some of the more bearish analysts are projecting a guidance cut. While estimates for the December quarter have been stable lately, estimates for the current and following fiscal years have been under pressure. The current Zacks Consensus EPS for fiscal year 2025 (ends in September) for Apple of $7.40 is down from $7.43 a week ago and $7.49 three months back.
Apple bulls see this all-around downbeat sentiment as overdone. While they acknowledge the China headwinds, they believe that the issue is manageable for the company and expect Apple to announce a local AI partner in the next few months. Baidu appears to be the front-line candidate, but analysts also mention Tencent and TikTok parent ByteDance as in the running.
Unlike Tesla and Apple, the issue with Microsoft is the capex overhang, with the market concerned about the company's heavy investments in AI infrastructure without a tangible monetization plan.
The capex question isn't restricted to Microsoft alone, as Alphabet, Amazon, and Meta also face the same issue. Of these four, the problem is particularly central for Alphabet as many in the market see AI as potentially risking the company's search monopoly. Alphabet did a good job in its last earnings release on that front, but this will likely remain an ongoing issue in the Google story.
The group is expected to bring in +20.9% more earnings in Q4 relative to the same period last year on +12.2% higher revenues.
As we all know by now, the group's phenomenal boost in 2021 partly reflected pulled forward demand from future periods that got adjusted mostly in 2022. The group got back into 'regular/normal' growth mode in 2023, and the trend is expected to continue this year and beyond.
Q4 Earnings Season Scorecard
Through Friday, January 24th, we have seen Q4 results from 78 S&P 500 members, or 15.6% of the index's total membership. Total earnings for these companies are up +17.4% from the same period last year on +6.2% higher revenues, with 83.3% beating EPS estimates and 66.7% beating revenue estimates.
For the Finance sector, we now have 45.5% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +27.5% from the same period last year on +10.9% higher revenues, with all the companies beating EPS estimates (100%) and 80% surpassing revenue estimates.
Key Earnings Reports This Week
The 100 S&P 500 members on deck to report results this week include several blue-chip operators like Boeing, GM, Starbucks, IBM, Southwest Airlines, Comcast, International Paper, and others, in addition to the aforementioned Mag 7 players.
By the end of this week, we will have seen Q4 results from more than 35% of the index's total membership.
The Earnings Big Picture
Excluding contributions from the Mag 7 companies, S&P 500 earnings would have been up +5.7% on +3.8% higher revenues.
Please note that the very strong growth expected in 2025 is not driven by one or two sectors but is rather broad-based. All 16 Zacks sectors are expected to enjoy positive earnings growth in 2025, with 8 of the 16 Zacks sectors expected to achieve double-digit earnings growth.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Picture Remains Strong: A Closer Look
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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/performancefor information about the performance numbers displayed in this press release.