From Nasdaq:

The Q4 earnings season has brought a picture of stability and resilience, with accelerating growth momentum in key areas. While earnings aren’t great, the overall trend is positive. 80.5% of companies have beaten EPS estimates, and 65% have beaten revenue estimates, with the Tech sector leading the way with 86% of companies beating EPS estimates. The Tech sector is expected to bring in 28.5% of the S&P 500 index’s total earnings over the coming four-quarter period.

The Q4 earnings and revenue growth pace represents an acceleration from recent quarters, with total earnings and revenues up +5.5% and +3.7% from the same period last year. The margins recovery in various sectors is a key driver of earnings growth in the coming periods, while the Tech sector is firmly back in the growth mode, also showing that the Mag 7 companies are expected to bring in 20% of all S&P 500 earnings in 2024.

The revisions trend has notably stabilized after appearing to turn substantially negative at the start of Q4. Estimates for 2024 Q1 and full-year 2024 are modestly coming down, but the overall earnings expectation for full-year 2024 has evolved in a positive direction.

These results confirm an improving growth trend in the Q4 earnings and revenue, showing a positive direction for the coming periods. The Tech sector is a key driver of earnings growth, and the revisions trend has notably stabilized, providing a stable outlook for the earnings picture.

The Q4 earnings season has brought a picture of stability and resilience, with accelerating growth momentum in key areas. While earnings aren’t great, the overall trend is positive. 80.5% of companies have beaten EPS estimates, and 65% have beaten revenue estimates, with the Tech sector leading the way with 86% of companies beating EPS estimates. The Tech sector is expected to bring in 28.5% of the S&P 500 index’s total earnings over the coming four-quarter period.



Read more: 5 Standout Features of the Q4 Earnings Season