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We have seen some awe-inspiring results from Microsoft, Meta Platforms and Amazon in recent days that reconfirm their leadership position in this market.
These companies, along with their peers in the ‘Magnificent 7’ group of stocks – Apple, Alphabet, Tesla and Nvidia – led the market higher last year, and that momentum has continued this year.
Other than Tesla, whose results disappointed the market once again and reflected the fourth quarter in a row of disappointing results, all of the other Mag 7 members that have reported came out with impressive growth numbers. The market wasn’t particularly impressed with the Alphabet and Apple reports, but they came out with Q4 earnings growth of +51.8% and +13.1%, respectively.
Tesla’s earnings were down -45.8% in Q3 on +3.5% higher revenues, as the EV-maker continued to grapple with weakening margins in an increasingly competitive EV market.
Using estimates for Nvidia, which will be coming out with its December-quarter results on February 21st, and actual results for the other six members of the group, total Q4 earnings for the group are expected to be up +48.7% from the same period last year on +14.5% higher revenues.
Please note that the Mag 7 companies currently account for 28.6% of the S&P 500 index’s total market capitalization and are expected to bring in 19.5% of the index’s total earnings in 2024. For 2023 Q4, the Mag 7 group has a bigger weightage, bringing in 23.1% of all S&P 500 earnings.
Given their enormous earnings power and growth profiles, it is hard to argue with the group’s market leadership. Importantly, analysts had been raising their estimates for the group even before the December-quarter results, with these numbers now adding to the positive revision momentum.
Beyond these mega-cap players, total Q4 earnings for the Technology sector as a whole are expected to be up +24.2% from the same period last year on +8.1% higher revenues.
The Earnings Big Picture
This week’s blockbuster Tech results has pushed the aggregate earnings growth picture for the S&P 500 index to +4.3% from last week’s +1.1% growth pace. Excluding the contribution from the Mag 7 stocks, Q4 earnings for the rest of the index would be down -4.2%.
Q4 Earnings Season Scorecard
Including all the results that came out through Friday, February 2nd, we now have Q4 results from 230 S&P 500 members, or 46% of the index’s total membership.
We have more than 500 companies on deck to report results this week, including 106 S&P 500 members. This week’s line-up includes a who’s who of the index, including Disney, Elli Lilly, MacDonalds, DuPont, Caterpillar, Ford, Pepsi, Chipotle, Uber, PayPal, Expedia, and many others.
Total Q4 earnings for the 230 index members that have reported already are up +4.2% from the same period last year on +2.8% higher revenues, with 81.3% beating EPS estimates and 63.9% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Q4 Earnings: Tech Flexes Strong Growth
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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/performance for information about the performance numbers displayed in this press release.
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Microsoft, Meta Platforms, Amazon, Apple, Alphabet, Tesla and Nvidia are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – February 5, 2024 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Microsoft (MSFT - Free Report) , Meta Platforms (META - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Alphabet (GOOGL - Free Report) , Tesla (TSLA - Free Report) and Nvidia (NVDA - Free Report) .
Magnificent 7 Earnings Results Solidify Market Leadership
We have seen some awe-inspiring results from Microsoft, Meta Platforms and Amazon in recent days that reconfirm their leadership position in this market.
These companies, along with their peers in the ‘Magnificent 7’ group of stocks – Apple, Alphabet, Tesla and Nvidia – led the market higher last year, and that momentum has continued this year.
Other than Tesla, whose results disappointed the market once again and reflected the fourth quarter in a row of disappointing results, all of the other Mag 7 members that have reported came out with impressive growth numbers. The market wasn’t particularly impressed with the Alphabet and Apple reports, but they came out with Q4 earnings growth of +51.8% and +13.1%, respectively.
Tesla’s earnings were down -45.8% in Q3 on +3.5% higher revenues, as the EV-maker continued to grapple with weakening margins in an increasingly competitive EV market.
Using estimates for Nvidia, which will be coming out with its December-quarter results on February 21st, and actual results for the other six members of the group, total Q4 earnings for the group are expected to be up +48.7% from the same period last year on +14.5% higher revenues.
Please note that the Mag 7 companies currently account for 28.6% of the S&P 500 index’s total market capitalization and are expected to bring in 19.5% of the index’s total earnings in 2024. For 2023 Q4, the Mag 7 group has a bigger weightage, bringing in 23.1% of all S&P 500 earnings.
Given their enormous earnings power and growth profiles, it is hard to argue with the group’s market leadership. Importantly, analysts had been raising their estimates for the group even before the December-quarter results, with these numbers now adding to the positive revision momentum.
Beyond these mega-cap players, total Q4 earnings for the Technology sector as a whole are expected to be up +24.2% from the same period last year on +8.1% higher revenues.
The Earnings Big Picture
This week’s blockbuster Tech results has pushed the aggregate earnings growth picture for the S&P 500 index to +4.3% from last week’s +1.1% growth pace. Excluding the contribution from the Mag 7 stocks, Q4 earnings for the rest of the index would be down -4.2%.
Q4 Earnings Season Scorecard
Including all the results that came out through Friday, February 2nd, we now have Q4 results from 230 S&P 500 members, or 46% of the index’s total membership.
We have more than 500 companies on deck to report results this week, including 106 S&P 500 members. This week’s line-up includes a who’s who of the index, including Disney, Elli Lilly, MacDonalds, DuPont, Caterpillar, Ford, Pepsi, Chipotle, Uber, PayPal, Expedia, and many others.
Total Q4 earnings for the 230 index members that have reported already are up +4.2% from the same period last year on +2.8% higher revenues, with 81.3% beating EPS estimates and 63.9% beating revenue estimates.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Q4 Earnings: Tech Flexes Strong Growth
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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/performance for information about the performance numbers displayed in this press release.