Zacks Director of Research, Sheraz Mian, reports stable net income margins for 222 S&P 500 members in Q3, with earnings up +10.7% and revenues up +8%. The proportion of companies beating EPS and revenue estimates is 68.5%, reflecting improving momentum and positive revisions trend for Q3.
Automakers like GM, Ford, and Tesla outperformed expectations in Q3 despite tariff concerns. Total earnings for auto sector players are down -23.9% on +4.2% higher revenues. Ford’s earnings dropped -7%, GM’s -19.3%, and Tesla’s -39.5%. Market reaction to results has been positive, with better-than-feared guidance for the current period.
For 2025 Q3, earnings growth is expected to be +7.3% on +7.3% revenue gains. The revisions trend is stable, with estimates for Q4 unchanged. Analysts will adjust estimates as more Q3 results come in. Zacks’ top stock-picking strategies have consistently outperformed the S&P, offering live picks with money-doubling potential.
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Read more at Nasdaq: Zacks Earnings Trends Highlights: General Motors, Ford, Tesla
