Peak of Q4 earnings season with +20.9% earnings growth overall, some concerns for Apple and Microsoft

From Zacks Investment Research: 2025-01-24 20:44:23

This week marks the peak of Q4 earnings season, with over 300 companies reporting results, including Tesla, Microsoft, Meta Platform, and Apple. Tesla’s stock has been soaring, up over 85% since the last quarterly release. Apple, on the other hand, has struggled, with concerns about China and AI strategy. Analysts project a guidance cut for Apple, with estimates for future fiscal years under pressure. Microsoft faces capex concerns, while Alphabet, Amazon, and Meta also grapple with AI investment issues. The Mag 7 group is expected to see +20.9% earnings growth in Q4, with +12.2% higher revenues.

In the Finance sector, 45.5% of S&P 500 companies have reported, with total earnings up +27.5% and revenues +10.9%. Blue-chip companies including Boeing, GM, Starbucks, IBM, and Southwest Airlines will report this week. Excluding the Mag 7 companies, S&P 500 earnings would be up +5.7% on +3.8% higher revenues. The overall earnings picture shows double-digit growth expected in 2025 and 2026, driven by broad-based growth across all sectors.



Read more at Zacks Investment Research: Mag 7 Earnings On Deck: A Closer Look – January 24, 2025