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Tesla, Meta Platforms, Microsoft and Alphabet are part of Zacks Earnings Preview
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For Immediate Release
Chicago, IL – April 22, 2024 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Tesla (TSLA - Free Report) , Meta Platforms (META - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) .
What Can Investors Expect from Big Tech Earnings?
Many in the market are looking to this week's quarterly results from the four members of 'the Magnificent 7' to help reverse the stock market's ongoing weakness.
The immediate catalyst for the stock market pullback appears to be tied to the timing of Fed easing as a result of the evolving inflation picture rather than any deterioration in the overall earnings picture. If anything, the overall earnings picture has actually been improving ever so slightly in recent weeks, as we have been noting in our earnings commentary.
The hope appears to be that robust results from the Mag 7 companies reporting this week – Tesla on Tuesday, April 23rd, Meta Platforms on Wednesday, April 24th, Microsoft and Alphabet on Thursday, April 25th – will help restore confidence in the market's fundamental underpinnings and offset some of the Fed-centric worries.
As the above chart shows, Meta is in a league of its own, while Microsoft and Alphabet are roughly tracking each other.
This pecking order, with Meta at the top and Tesla at the bottom, remains unchanged when we begin tracking from October 27, 2023.
This divergence in performance reflects each stock's earnings outlook, with Meta enjoying the best and Tesla the worst.
The current Q1 Zacks Consensus EPS for Meta of $4.32 has increased +20% since late January 2024. On the other hand, Tesla's Q1 EPS estimate of $0.46 has been cut by more than -41% over the same period.
Tesla's woes are well known, ranging from a distracted leader to fundamental supply-demand forces for its core product. Meta is benefiting from an improving digital ad market and effective cost controls.
Q1 estimates for Microsoft and Alphabet have barely moved higher, with both largely seen as leading the AI effort. It is unlikely that we will see any tangible developments from either of these two companies on their respective AI strategies, but we will nevertheless get more clarity about the coming periods.
The group is expected to bring in +33% more earnings relative to the same period last year on +12.7% higher revenues.
As we all know by now, the group's phenomenal boost in 2021 partly reflected pulled forward demand from future periods that got primarily adjusted in 2022. The group jumped back into the 'regular/normal' growth model last year, and the trend is expected to continue this year and beyond.
Beyond these Mag 7 players, total Q1 earnings for the Technology sector as a whole are expected to be up +19.4% from the same period last year on +8.3% higher revenues.
As was the case with the 'Mag 7', the Tech sector as a whole dealt with the pulled-forward revenues during 2021 but is expected to remain firmly in growth mode.
Earnings Season Scorecard and This Week's Earnings Reports
This week, we enter the heart of the Q1 earnings season, with more than 500 companies reporting results, including 155 S&P 500 members. In addition to the aforementioned mega-cap Tech players, we literally have a representative cross-section of the market on deck to report results this week.
Through Friday, April 19th, we have seen Q1 results from 71 S&P 500 index members. Total Q1 earnings for these 71 index members are up +9.4% from the same period last year on +4.5% higher revenues, with 77.5% beating EPS estimates and 63.4% beating revenue estimates.
The Earnings Big Picture
Looking at Q1 as a whole, total S&P 500 earnings are expected to be up +3.8% from the same period last year on +3.9% higher revenues, which would follow the +6.8% earnings growth on +3.9% revenue gains in the preceding period.
Looking at the overall earnings picture on an annual basis, total 2024 S&P 500 earnings are expected to be up +8.8% on +1.7% revenue growth.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Expectations are Moving Higher
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.
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/performancefor information about the performance numbers displayed in this press release.
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Tesla, Meta Platforms, Microsoft and Alphabet are part of Zacks Earnings Preview
For Immediate Release
Chicago, IL – April 22, 2024 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Tesla (TSLA - Free Report) , Meta Platforms (META - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) .
What Can Investors Expect from Big Tech Earnings?
Many in the market are looking to this week's quarterly results from the four members of 'the Magnificent 7' to help reverse the stock market's ongoing weakness.
The immediate catalyst for the stock market pullback appears to be tied to the timing of Fed easing as a result of the evolving inflation picture rather than any deterioration in the overall earnings picture. If anything, the overall earnings picture has actually been improving ever so slightly in recent weeks, as we have been noting in our earnings commentary.
The hope appears to be that robust results from the Mag 7 companies reporting this week – Tesla on Tuesday, April 23rd, Meta Platforms on Wednesday, April 24th, Microsoft and Alphabet on Thursday, April 25th – will help restore confidence in the market's fundamental underpinnings and offset some of the Fed-centric worries.
As the above chart shows, Meta is in a league of its own, while Microsoft and Alphabet are roughly tracking each other.
This pecking order, with Meta at the top and Tesla at the bottom, remains unchanged when we begin tracking from October 27, 2023.
This divergence in performance reflects each stock's earnings outlook, with Meta enjoying the best and Tesla the worst.
The current Q1 Zacks Consensus EPS for Meta of $4.32 has increased +20% since late January 2024. On the other hand, Tesla's Q1 EPS estimate of $0.46 has been cut by more than -41% over the same period.
Tesla's woes are well known, ranging from a distracted leader to fundamental supply-demand forces for its core product. Meta is benefiting from an improving digital ad market and effective cost controls.
Q1 estimates for Microsoft and Alphabet have barely moved higher, with both largely seen as leading the AI effort. It is unlikely that we will see any tangible developments from either of these two companies on their respective AI strategies, but we will nevertheless get more clarity about the coming periods.
The group is expected to bring in +33% more earnings relative to the same period last year on +12.7% higher revenues.
As we all know by now, the group's phenomenal boost in 2021 partly reflected pulled forward demand from future periods that got primarily adjusted in 2022. The group jumped back into the 'regular/normal' growth model last year, and the trend is expected to continue this year and beyond.
Beyond these Mag 7 players, total Q1 earnings for the Technology sector as a whole are expected to be up +19.4% from the same period last year on +8.3% higher revenues.
As was the case with the 'Mag 7', the Tech sector as a whole dealt with the pulled-forward revenues during 2021 but is expected to remain firmly in growth mode.
Earnings Season Scorecard and This Week's Earnings Reports
This week, we enter the heart of the Q1 earnings season, with more than 500 companies reporting results, including 155 S&P 500 members. In addition to the aforementioned mega-cap Tech players, we literally have a representative cross-section of the market on deck to report results this week.
Through Friday, April 19th, we have seen Q1 results from 71 S&P 500 index members. Total Q1 earnings for these 71 index members are up +9.4% from the same period last year on +4.5% higher revenues, with 77.5% beating EPS estimates and 63.4% beating revenue estimates.
The Earnings Big Picture
Looking at Q1 as a whole, total S&P 500 earnings are expected to be up +3.8% from the same period last year on +3.9% higher revenues, which would follow the +6.8% earnings growth on +3.9% revenue gains in the preceding period.
Looking at the overall earnings picture on an annual basis, total 2024 S&P 500 earnings are expected to be up +8.8% on +1.7% revenue growth.
For a detailed look at the overall earnings picture, including expectations for the coming periods, please check out our weekly Earnings Trends report >>>> Earnings Expectations are Moving Higher
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.
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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/performancefor information about the performance numbers displayed in this press release.