From Nasdaq: 2025-05-05 08:10:00

Zacks.com releases a list of companies likely to issue earnings surprises, including Microsoft, Meta Platforms, Amazon, and Apple. The market reacts positively to Microsoft and Meta Platforms results, while Apple’s numbers disappoint. Year-over-year earnings growth rates vary among the ‘Magnificent 7’ group, with Amazon showing decelerating growth in its cloud business.

Despite Amazon’s modestly lowered Q2 earnings guidance, the company’s revenue guidance aligns with consensus expectations. Apple’s underperformance is attributed to its China exposure, with plans to shift iPhone assembly to India. Estimates for the ‘Mag 7’ group have been under pressure but have improved after better-than-expected Q1 earnings results.

Earnings expectations for Q1 show a +13.4% increase in total earnings for 358 S&P 500 members. However, EPS and revenue beats percentages are tracking below historical averages. Estimates for full-year 2025 have come under pressure, with negative revisions in various sectors since mid-February.

With estimates for Q1 and full-year 2025 under pressure, the market reflects diminished earnings expectations. Earnings estimates are expected to come down further due to uncertainty around the emerging tariff regime. Estimates for 2025 Q2 have been revised downwards, impacting market performance.

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For more details on evolving earnings trends and Zacks’ top stock picks, visit Zacks.com. Zacks provides investment resources and information on investment decisions subject to terms and conditions. Past performance is not indicative of future results. Check out Zacks’ free stock analysis reports for Amazon, Apple, Microsoft, and Meta Platforms.



Read more at Nasdaq: Microsoft, Meta Platforms, Amazon and Apple are part of Zacks Earnings Preview