From Nasdaq:

The U.S. economy is experiencing growth momentum, but it is expected to moderate due to monetary policy tightening. The chart below shows that while 2022 Q4 earnings are expected to be down, the next three quarters don’t foresee an earnings recession – in fact, revenue growth is trending up over this period.

Earnings estimates once declined significantly but stabilized in April 2023. 2024 earnings estimates are also coming down, although the revisions trend seems to be improving again lately. One sector showing a notable turnaround in its earnings outlook is Tech, with the recent uptrend evident in the chart below.

The Q4 earnings season is underway, with 17 S&P 500 members, including FedEx, Nike, and Costco, already reporting results. Total earnings for these members are up +13.8% from the same period last year, with 88.2% beating EPS estimates. While it’s still early, earnings and revenue growth rates for this group are tracking better than in other recent periods.

Further information and predictions are available in the weekly Earnings Trends report. Additionally, Zacks is providing a free bonus report that names five “must buys” in the AI industry, which is predicted to have an economic impact of $15.7 Trillion by 2030.



Read more: How Will Earnings Estimates Evolve in 2024?