From Nasdaq: 2024-11-22 16:11:00

Nvidia’s NVDA quarterly results were excellent, beating estimates and raising guidance. Q3 earnings increased +106.3% to $19.37 billion, while revenues were up +93.6% to $35.08 billion. Market’s lukewarm reaction may be due to high expectations. Nvidia’s market cap of $3.59 trillion now surpasses Apple and Microsoft. Stock’s performance has outperformed the sector and S&P 500.

Focus shifts to the Retail sector, with 29 out of 34 S&P 500 retail companies reporting Q3 results. Total Q3 earnings for these retailers are up +12.8% from last year, with 58.6% beating EPS estimates. Retail sector includes traditional retailers, online vendors like Amazon, and restaurant players.

Retail sector struggles to beat estimates in Q3, with EPS beats tracking below historical averages. Amazon’s strong results boost overall earnings growth, highlighting the convergence of digital and brick-and-mortar operations. Covid lockdowns accelerated this trend, impacting Q3 results for the sector.

Q3 earnings season continues with 476 S&P 500 members reporting. Total earnings are up +8.1% from last year, with 73.7% beating EPS estimates. Energy sector drag affects overall earnings growth, while the Tech sector boosts it. Excluding certain sectors, earnings growth varies significantly.

For Q4, total S&P 500 earnings expected to be up +7.7% from last year. Estimates for Q4 holding up better compared to Q3, with double-digit earnings growth forecasted for 2025 and 2026. Overall earnings picture shows stability and positive growth trend, despite lower beats percentages.

Overall, S&P 500 earnings expected to be up +8.1% from last year on +5.7% higher revenues. Energy and Tech sectors have contrasting effects on earnings growth pace. Excluding certain sectors, earnings growth varies significantly. Strong performance expected for the last quarter of the year.

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Read more at Nasdaq:: Taking Stock of the Earnings Picture