Q3 earnings for big banks show growth, with mixed performance from Oracle and Adobe.

From Nasdaq Financial Services: 2024-09-13 17:34:00

The Q3 earnings season for big banks starts on October 11th, with impressive reports already from Oracle and Adobe showing earnings growth of +25.8% and +6.9% higher revenues. Adobe’s stock, however, fell due to underwhelming guidance. Despite this, Oracle’s positive report has the stock up +55.4% this year. Next up are Lennar and FedEx reporting on September 19th.

Total Q3 earnings for the S&P 500 are expected to be up +3.8% from last year on +4.6% higher revenues. The negative trend of downward revisions for 2024 Q3 earnings estimates is concerning, particularly in sectors like Transportation and Energy. Tech and Finance are the only sectors with modestly rising estimates. Despite this, future growth is expected to accelerate.

Lennar is expected to report a decrease in earnings at -7.4% and positive revenue growth at +6.4%. The homebuilder sector has been under pressure due to rising interest rates, but hopes of a favorable interest rate environment in the future have been boosting stocks. For the Zacks Construction sector, earnings are expected to decline by -3% for Q3 but grow by +1.1% for the full year 2024.

Overall, the construction sector profitability has bottomed out with future growth expected from next year onwards. Keep an eye on our weekly Earnings Trends report for a detailed look at the overall earnings picture and expectations for the coming periods.



Read more at Nasdaq Financial Services:: Q3 Earnings: What Can Investors Expect?