Back to top

Image: Bigstock

Zacks Earnings Trends Highlights: XOM and CVX

Read MoreHide Full Article

For Immediate Release

Chicago, IL – April 18, 2024 – Zacks Director of Research Sheraz Mian says, "We are off to a good start in the Q1 earnings season, with the earnings growth pace modestly accelerating from the trend line of the last few quarters."

Earnings Expectations Are Moving Higher

Note: 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:

  • We are off to a good start in the Q1 earnings season, with the earnings growth pace modestly accelerating from the trend line of the last few quarters, though revenue growth remains on a decelerating trend, and positive surprises are tracking below historical average levels. Importantly, earnings estimates are going up.
  • Total earnings for the 48 S&P 500 members that have reported Q1 results are up +9.5% from the same period last year on +4.5% higher revenues, with 77.1% beating EPS estimates and 64.6% beating revenue estimates.
  • The earnings growth pace for these 48 index members represents an acceleration from what we had seen in other recent periods, though the EPS and revenue beats percentages are tracking modestly below the 12-quarter averages for this group of 48 index members.
  • For the Finance sector, we now have Q1 results for 39.7% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +4.6% from the same period last year on +4.7% higher revenues, with 77.8% beating EPS estimates and the same proportion beating revenue estimates.

A notable favorable development on the earnings front is signs of improvement in the overall revisions trend, with estimates in the aggregate starting to go modestly up. We are seeing this trend for the current period (2024 Q2) as well as for full-year 2024 estimates.

This new development has roughly coincided with the start of the Q1 earnings season. That said, a number of sectors, including Tech and Retail, had already been enjoying positive estimate revisions for quite some time. At present, half of the 16 Zacks sectors have higher aggregate earnings estimates relative to what was expected at the start of the year.

The Energy sector is now enjoying favorable estimate revisions as well, for stocks like Exxon (XOM - Free Report) and Chevron (CVX - Free Report) .

Chevron’s current full-year 2024 EPS estimate of $13.56 is down from $15.28 at the end of 2023, but it is up from $13.04 at the end of March 2024. As with Chevron, estimates for Exxon have been going up as well, with the oil major’s $9.70 EPS estimate up +6.5% over the last two weeks.

Unlike the Energy sector, whose revisions trend has just turned positive, the Tech sector has been enjoying a favorable revisions trend for some time now.

A big part of this year’s earnings growth is expected to come from margins reversing last year’s declines and starting to expand again. The expectation is that aggregate net margins this year get back to the 2022 level, with the Tech sector driving most of the gains.

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 Contact

Zacks Investment Research

800-767-3771 ext. 9339 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.

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 for information about the performance numbers displayed in this press release.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Chevron Corporation (CVX) - free report >>

Exxon Mobil Corporation (XOM) - free report >>

Published in