Tech sector reports strong Q3 earnings with double-digit growth, positive results for top companies.

From Nasdaq: 2024-10-30 18:10:00

Q3 earnings for 258 S&P 500 members show a +8.9% increase in earnings and a +5.0% increase in revenues, with 74.4% beating EPS estimates and 59.3% beating revenue estimates. Total S&P 500 earnings expected to be up +4.4% overall, driven by the Tech sector’s double-digit growth.

The ‘Magnificent 7’ companies are expected to see a +20.1% earnings increase in Q3 with +14.0% higher revenues. Tesla impressed with a +16.9% earnings growth on +7.8% higher revenues, leading the Q3 reporting cycle for the group. Alphabet also saw positive results, alleviating concerns about AI spending.

The Mag 7 companies are projected to generate $116.1 billion in earnings on $488.7 billion in revenues for Q3, accounting for 21.7% of all S&P 500 earnings. The group’s profitability growth remains strong, with Q3 earnings expected to be up +20.1% on +14.0% higher revenues.

Looking ahead to Q4, total S&P 500 earnings are forecasted to be up +8.7% on +5.2% higher revenues. The Mag 7 stocks, excluding Energy, show sustainable profitability growth. The market is closely monitoring AI-related developments and earnings for these companies.

A new top semiconductor stock is emerging in the market, poised to capitalize on the demand for AI, ML, and IoT. Global semiconductor manufacturing is projected to reach $803 billion by 2028. Investors can access free reports and stock analysis from Zacks Investment Research for Microsoft, Tesla, and Alphabet.



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