Earnings Picture Remains Strong: A Closer Look
From Nasdaq: 2025-01-22 18:05:00
The 2024 Q4 earnings season shows strength, with 62 S&P 500 companies reporting a +19.6% increase in earnings and +8.4% higher revenues. Finance sector companies are up +26.2% in earnings and +10.9% in revenues, beating estimates. Netflix had a stellar performance, while Johnson & Johnson’s guidance was underwhelming. Tech sector remains a key growth driver with +14.9% earnings growth expected in Q4.
2025 is expected to see all 16 Zacks sectors achieve positive earnings growth, with 8 sectors expecting double-digit growth. The Tech sector is forecasted to have +14.9% earnings growth in Q4, continuing its trend of double-digit growth. The overall earnings picture shows expectations for double-digit earnings growth in the next two years. The number of sectors experiencing strong growth is expanding.
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