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Apple, Microsoft, Tesla and McDonald's are part of Zacks Earnings Preview

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For Immediate Release

Chicago, IL – January 24, 2022 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Tesla (TSLA - Free Report) and McDonald’s (MCD - Free Report) .

3 Things to Know About Q4 Earnings Season

We get into the heart of the Q4 earnings season this week, with results from more than 300 companies coming out, including a total of 108 S&P 500 members.

While the results thus far from the 12.8% of S&P 500 members that have reported already were dominated by the Finance sector, this week’s line-up provides a broad cross-section of all industries, ranging from Apple, Microsoft and Tesla to McDonald’s, and many others in the middle. By the end of this week, we will have seen Q4 results from more than one-third of the index’s total membership.

The results thus far are largely in line with expectations, notwithstanding a few standout negative surprises. Results show broad top-line strength, but cost pressures are endemic, putting a spotlight on the outlook for margins.

It is this margins outlook that will determine how the revisions trend evolves through this earnings season, though estimates for the current period (2022 Q1) are holding up a lot better than was the case at the comparable time in the preceding quarter.

Through Friday, January 21st, we have seen Q4 results from 64 S&P 500 members or 12.8% of the index’s total membership. Total earnings for these 64 index members are up +22.9% from the same period last year on +13.6% higher revenues, with 84.4% beating EPS estimates and 81.3% beating revenue estimates.

Here Are the Three Things to Know So Far

The growth pace is expected to decelerate further in the current period (2022 Q1).

Please note that the 2021 Q4 earnings and revenue growth of +22% and +12.1%, respectively, represent the blended growth rates, meaning they combine the actual results from the 64 companies that have reported with estimates for the still-to-come companies.

Companies are easily beating consensus EPS and revenue estimates. The proportion of companies beating revenue estimates is particularly high, though both EPS and revenue beats percentages for these 64 index members are tracking above the 5-year averages.

Please note that this is better than what we had seen in the comparable period for 2021 Q4. But we will get a better sense of the revisions trend after seeing results from more companies and hearing from their management teams about underlying business trends.

For an in-depth look at the overall earnings picture and expectations for the coming quarters, please check out our weekly Earnings Trends report >>>> Big Wall Street Banks Provide Mixed Start to Q4 Earnings Season

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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