Alphabet, Meta, Microsoft, Amazon and Apple are part of Zacks Earnings Preview

For Immediate ReleaseChicago, IL – October 28, 2024 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Alphabet GOOGL, Meta META, Microsoft MSFT, Amazon AMZN and Apple AAPL.Previewing Big Tech EarningsTesla kicked off the Q3 reporting cycle for the Magnificent 7 companies in style, with significant gains on the margins front raising hopes that competitive pressures may have started to ease. Tesla’s issues have always been unique, not providing any read-through to the five Mag 7 peers that are coming out with Q3 results this week.This week takes us into the heart of the Q3 earnings season, with more than 800 companies reporting results, including 168 S&P 500 members. Of the Mag 7 members, we have Alphabet on Tuesday, October 29th, Meta and Microsoft on Wednesday, October 30th, Amazon and Apple on Thursday, October 31st.The bounce in Tesla shares has more than made up for the market’s disappointment with the Robo taxi announcement. But the stock is still the Mag 7 laggard this year.Tesla’s margin gains are particularly notable in this quarterly release, but it is perhaps premature to assume that the margin pressures are now behind them. There is some talk that maybe a bigger proportion of this quarter’s deliveries came from the high-margin Shanghai factory. Part of the gains may also have resulted from production tax credits related to Tesla’s battery production.Should Tesla’s Q3 margin gains prove durable, then we can reasonably expect extrapolation of the same into the coming quarters.Alphabet shares were down in response to the last earnings report on July 23rd even though the company had handily beaten consensus EPS and revenue estimates. If we look at the stock’s performance since July 22nd, the day before the Q2 earnings release, Alphabet shares are down -9.3%, which compares to a +1.1% gain for the Zacks Tech sector and a +3.9% gain for the S&P 500 index.Given this performance despite strong results, we can reasonably opine that the market will remain unimpressed with this report as well unless management can make a compelling case for its ever-rising AI-centric spending plans. Investors’ worries increased due to management’s comment during the Q2 earnings call that the risk on the capex question was more about under-investing than the alternative.The capex question isn’t restricted to Alphabet alone, as Microsoft, Amazon, and Meta also face the same issue. But the issue is particularly central for Alphabet as many in the market see AI as risking the company’s search monopoly. This likely explains why Alphabet shares have lagged Microsoft and Amazon over the last three months.As we all know by now, the group’s phenomenal boost in 2021 partly reflected pulled forward demand from future periods that got primarily adjusted in 2022. The group returned to the ‘regular/normal’ growth model last year, and the trend is expected to continue this year and beyond.Q3 Earnings Season ScorecardThrough Friday, October 25th, we have seen Q3 results from 182 S&P 500 members, or 36.4% of the index’s total membership. With 168 S&P 500 members on deck to report results this week, we will have seen Q3 results from 70% of the index’s membership.Total earnings for these 182 companies that have reported are down -2.1% from the same period last year on +4.5% higher revenues, with 75.8% of the companies beating EPS estimates and 58.8% beating revenue estimates.The proportion of these 182 index members beating both EPS and revenue estimates is 51.1%.The Earnings Big PictureLooking at Q3 as a whole, combining the results that have come out with estimates for the still-to-come companies, total earnings for the S&P 500 index are expected to be up +1.5% from the same period last year on +5% higher revenues.Notwithstanding the modest growth pace in Q3, the aggregate earnings total for the period is very close to the preceding period’s all-time quarterly record.For the last quarter of the year, total S&P 500 earnings are expected to be up +9% from the same period last year on +5.3% higher revenues.Unlike the unusually high magnitude of estimate cuts that we had seen ahead of the start of the Q3 earnings season, estimates for Q4 are holding up a lot better.Please note that this year’s +7.3% earnings growth improves to +9.2% on an ex-Energy basis.For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Mag 7 Earnings Loom: What Can Investors Expect? 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 >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comZacks.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.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks