Zacks Earnings Trends Highlights: Nvidia and Meta Platforms

For Immediate ReleaseChicago, IL – December 19, 2024 – Zacks Director of Research Sheraz Mian says, "For 2024 Q4, total S&P 500 earnings are currently expected to be up +7.4% from the same period last year on +4.8% higher revenues."Earnings Growth Expected to Broaden Beyond TechNote: 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:For 2024 Q4, total S&P 500 earnings are currently expected to be up +7.4% from the same period last year on +4.8% higher revenues.Q4 earnings growth improves to +9.5% once the Energy sector’s drag is removed from the aggregate numbers, but the growth pace drops to +4.0% once the Tech sector’s substantial contribution is excluded.Earnings estimates for the period have steadily come down since the quarter got underway, with the current +7.4% growth rate down from +9.8% in early October.Q4 earnings for the ‘Magnificent 7’ group of companies are expected to be up +20.7% from the same period last year on +12.3% higher revenues. Excluding the ‘Mag 7’ contribution, Q4 earnings for the rest of the index would be up only +3.4% (vs. +7.4%). Tech Driving Earnings GrowthThe Tech sector has been a significant growth driver in recent quarters, and the trend is expected to continue in 2024 Q4 and beyond. For Q4, Tech sector earnings are expected to be up +14.6% from the same period last year on +10% higher revenues, the 6th quarter in a row of double-digit earnings growth.This would follow the sector’s +22.5% earnings growth on +11% higher revenues in 2024 Q3. In addition to the Tech sector’s strong growth profile, the sector is also among the few sectors whose earnings outlook is steadily improving. This shows up in the revisions trend that remains positive for the Tech sector, both for Q4 and full year 2025.Take the examples of Nvidia NVDA and Meta Platforms META. The current Q4 Zacks Consensus EPS estimate for Nvidia of 84 cents is up from 78 cents two months back. The same consensus EPS estimate for Meta of $6.76 has increased +7.1% over the last two months.The Earnings Big PictureEstimates for 2024 Q4 have declined since the quarter got underway, but the pace and magnitude of negative revisions is less than we had seen in the comparable period of Q3.The expectation is for double-digit earnings growth in each of the next two years, with the number of sectors enjoying strong growth notably expanding from the narrow base we have been seeing lately.Tech sector earnings are expected to be up +17.4% in 2025, which would follow the sector’s +19.8% earnings growth in 2024. But even excluding the Tech earnings, S&P 500 earnings would be up +12.3% in 2025, with nine of the 16 Zacks sectors expected to enjoy double-digit earnings growth.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.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>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 NVIDIA Corporation (NVDA): 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