Q4 Earnings Scorecard and Fresh Analyst Reports for NVIDIA, Exxon & ServiceNow

Tuesday, February 11, 2025The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features a real-time scorecard for the Q4 earnings season and new research reports on 16 major stocks, including NVIDIA Corporation (NVDA), Exxon Mobil Corporation (XOM) and ServiceNow, Inc. (NOW), as well as a micro-cap stock Willis Lease Finance Corporation (WLFC). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here >>>Ahead of Wall StreetThe daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.You can read today's AWS here >>> Pre-Markets Take Some Froth Off the Top; Powell to Speak, Q4 Results ContinueQ4 Earnings Season Scorecard Including all of this morning's releases, we now have Q4 results from 326 S&P 500 members or 65.2% of the index's total membership. Total earnings for these companies are up +13.3% from the same period last year on +5.9% higher revenues, with 77.6% beating EPS estimates and 65.3% beating revenue estimates. The earnings and revenue growth rates for these 326 index members represents a notable acceleration from the growth pace of other recent periods, though the beats percentages are tracking modestly below historical averages for this same group of companies. For the current period (2025 Q1), total S&P 500 earnings are currently expected to be up +7.7% from the same period last year on +4.3% higher revenues. Estimates for the period have been coming down since the start of January, with the current +7.7% down from +10.4% at the start of the period. This is relative more pressure on estimates than we had seen in the comparable period for 2024 Q4, with estimates for 15 of the 16 Zacks sectors down since the start of January. For more details about the Q4 earnings season and the overall evolving earnings picture, please check out >>>>These 5 Charts Explain the Current Earnings Outlook Today's Featured Research ReportsNVIDIA shares have recovered some of its lost ground following the DeepSeek unveiling, but they still remain outstanding performers. The company is benefiting from the strong growth of artificial intelligence (AI), high performance and accelerated computing. The data center end-market business is benefiting from the growing demand for generative AI and large language models using graphic processing units (GPUs) based on NVIDIA Hopper and Ampere architectures.A surge in hyperscale demand and higher sell-ins to partner across the Gaming and ProViz end markets following the normalization of channel inventory are acting as tailwinds.Collaborations with Mercedes-Benz and Audi are likely to advance its presence in the autonomous vehicles and other automotive electronics space. The Zacks analyst expects NVIDIA’s revenues to witness a CAGR of 50.5% through fiscal 2025-2027. However, softening IT spending amid macroeconomic headwinds and the U.S.-China tech war remain major concerns.(You can read the full research report on NVIDIA here >>>)Shares of Exxon Mobil have outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+11.2% vs. +6.6%). The company’s high-value assets in the Permian Basin and Guyana drive robust production growth, doubling upstream earnings since 2019. The Pioneer acquisition and Guyana ramp-up have enhanced profitability, while a robust structural savings strengthen resilience.  With a lower exposure to debt capital, XOM supports steady cash flows, dividends, buybacks and investments in high-return projects. Expansion in low-carbon tech, including Baytown's hydrogen facility, positions it for future growth.Yet, refining margins are pressured due to global capacity increases, with refining profits softening. The refining margin pressure intensifies the reliance on upstream operations which is vulnerable to fluctuating oil and gas prices. Commodity price volatility challenges profitability, especially as crude prices dipped in the fourth quarter.(You can read the full research report on Exxon Mobil here >>>)ServiceNow shares have outperformed the Zacks Computers - IT Services industry over the past year (+30.1% vs. +9.5%). The company has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. ServiceNow had 2,109 total customers with more than $1 million in annual contract value (ACV) at the end of the fourth quarter, which represents 14% year-over-year growth in customers. ServiceNow had 19 deals greater than $5 million in net new ACV. It closed 170 deals greater than $1 million net new ACV. Generative Artificial Intelligence (Gen AI) deals continued to gain traction.ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. Pro Plus AI grew 150% sequentially. It is riding on an expanding partner base and acquisitions. However, NOW is suffering from stiff competition and unfavorable forex.(You can read the full research report on ServiceNow here >>>)Shares of Willis Lease Finance have outperformed the Zacks Transportation - Equipment and Leasing industry over the past year (+304% vs. -7.8%). This microcap company with market capitalization of $1.32 billion have given excellent returns as global commercial aircraft leasing market is fueled by rising air travel demand and a shift toward leasing over ownership. WLFC is well-positioned to benefit, with 81% of its $2.8 billion portfolio focused on narrowbody engines, critical for short-to-medium haul routes.In the first nine months of 2024, WLFC achieved record pre-tax earnings of $122.3 million. A new $1 billion credit facility boosts liquidity for growth, while sustainability initiatives position WLFC as a leader in aviation decarbonization. Vertical integration enhances profitability, with maintenance reserve revenues up 41% and spare parts sales surging 223% year over year.However, headwinds include rising debt costs, supply chain disruptions, high MRO expenses, and reliance on short-term leases, which expose WLFC to cyclicality. Competitive and regulatory pressures further challenge profitability in a rapidly evolving landscape.(You can read the full research report on Willis Lease Finance here >>>)Other noteworthy reports we are featuring today include Royal Caribbean Cruises Ltd. (RCL), General Motors Company (GM) and Willis Towers Watson Public Limited Company (WTW).Director of ResearchSheraz MianNote: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Today's Must ReadNVIDIA (NVDA) Benefits From Rising Adoption of GPUsExxonMobil's (XOM) Guyana & Permian Basin Discoveries AidGrowing Customer Base Drives ServiceNow's (NOW) ProspectsFeatured ReportsSolid Bookings Aid Royal Caribbean (RCL) High Costs HurtPer the Zacks analyst, Royal Caribbean is likely to benefit from robust booking trends, strength in onboard consumer spending and digital innovations. However, high fuel costs and macro woes ail.General Motors (GM) to Benefit From Restructuring in China The Zacks analyst sees promise in General Motors' restructuring efforts in China, which are starting to show results. The company aims to return its China business to profitability this year.Willis Towers (WTW) Poised to Gain from Segmental StrengthPer the Zacks analyst, Willis Towers is set to gain from solid customer retention levels, growing new business and geographic diversification across segments. Yet, high costs weighing on margin ails.Investments to Benefit CMS Energy (CMS) Amid Rising CostsPer the Zacks analyst, investments will boost CMS Energy's grid upgrades. Yet rising costs for closure of solid waste disposal facilities for coal ash may hurt the stock.Hologic (HOLX) Thrives on Molecular Business, Macro Woes AilThe Zacks analyst is impressed that Hologic's Molecular Diagnostics business performance is driven by the BV/CV/TV assay and Biotheranostics. Yet, macroeconomic volatilities may hurt its operations. Digital Expansion Fuels BJ's Wholesale (BJ) Sales GrowthPer the Zacks analyst, BJ's Wholesale Club has been investing in digital capabilities to enhance member engagement. Digitally-enabled sales rose 30% in the third quarter of fiscal 2024. Dolby (DLB) Gains From Continued Strength in Vision & AtmosPer the Zacks analyst, Dolby's performance is being cushioned by adoption of Dolby Atmos and Dolby Vision. The company expects these businesses to grow by 15% in fiscal 2025. New UpgradesRayonier (RYN) Rides on Solid Portfolio & HBU DevelopmentsPer the Zacks analyst, a solid timberland portfolio and focus on unlocking the long-term value of its HBU development and rural property portfolio are likely to support Rayonier.Exparel Sales to Boost Pacira's (PCRX) Growth ProspectsPer the Zacks Analyst, Exparel is Pacira's growth engine and enjoys multi-layered patent protection which will ensure the drug's market exclusivity. Solid Momentum in DIET Sector to Benefit MRC Global (MRC)Per the Zacks analyst, MRC Global is poised to benefit from several contract wins in the DIET sector, driven by solid pipeline of projects from carbon-based energy to alternative forms of energy.New DowngradesLow Liquidity and Seasonality are Equifax's (EFX) HeadwindsPer the Zacks analyst, Equifax's liquidity has declined. The company's current ratio in the fourth quarter was 0.75 lower than the previous quarter's 0.88. Seasonality in business is an overhang.High-Interest Expense and Seasonality Hurt Corpay (CPAY)Per the Zacks analyst, higher interest expense due to an increase in LIBOR rate and additional borrowings is a headwind to Corpay's bottom line. Seasonality in business is an overhang.Rising Operating Expenses to Impede KKR & Co. (KKR) GrowthPer the Zacks analyst, a rise in KKR & Co.'s operating expenses due to an increase in commission expenses and employee compensation expenses will likely hinder the company's bottom-line growth.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 256 positions with double- and triple-digit gains in 2024 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 Exxon Mobil Corporation (XOM): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report Willis Towers Watson Public Limited Company (WTW): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report Willis Lease Finance Corporation (WLFC): 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