From Nasdaq: 2024-12-11 14:40:00

For 2024 Q4, S&P 500 earnings are expected to rise by 7.5% with revenues up by 4.7%. Earnings estimates have fallen from +9.8% to +7.5%. Medical, Tech, Finance, and Utilities sectors are set for significant earnings growth, while Energy, Aerospace, and Conglomerates are expected to decline. The ‘Magnificent 7’ companies anticipate a 20.5% earnings increase.

Retail sector earnings are mixed with Walmart showing strong performance due to grocery sales and market share gains among higher-income consumers. Target and Foot Locker face challenges in discretionary spending areas. Overall, consumer spending trends are stable, but some sectors suffer.

Q3 earnings for the S&P 500 are expected to increase by 8.2% with revenues up by 5.7%. Excluding the Energy sector, earnings growth would be 10.6%. Tech sector contributes significantly to earnings growth. Q4 earnings are anticipated to rise by 7.5%, with Energy sector dragging down the numbers. The trend shows improvement from next quarter onwards.

Tech sector earnings are forecasted to grow by 17.0% in 2025, following a 19.8% increase in 2024. S&P 500 earnings are expected to grow by double digits in the next two years. The number of sectors with strong growth is expanding. Corrections have been made to the 2026 Magnificent 7 year-over-year revenue growth data.

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Read more at Nasdaq:: Looking Ahead to the Q4 Earnings Season (Revised)