This week, over 300 companies, including 4 of the ‘Magnificent 7’ members and 102 S&P 500 members, are set to report Q4 earnings. Microsoft, Meta, Tesla, and Apple will announce results after market close on January 28th and 29th, with struggles in the AI space impacting their performance.
Key expectations for Apple include $2.65 EPS and $137.5 billion in revenues, both showing year-over-year gains. Microsoft is expected to report $3.88 EPS on $80.2 billion in revenues, with positive revisions trends. Meta’s expectations are $8.15 EPS on $58.4 billion in revenues, down following the last quarterly release.
The Magnificent 7 group is expected to see a +16.9% increase in Q4 earnings from the same period last year, with +16.6% higher revenues. Analysts have been steadily raising their estimates, with positive trends seen for Microsoft and the group as a whole.
Q4 earnings results from 64 S&P 500 members show earnings up +17.5% and revenues up +7.8% from the same period last year. This week’s line-up includes bellwether companies like UPS, Boeing, GM, Starbucks, IBM, Visa, and more, with comparisons showing strong growth rates.
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Earnings and revenue growth remain strong, with EPS beats tracking above average for 64 reporting companies, although revenue beats are slightly weaker. Estimates for the current period have seen pressure, but overall double-digit earnings growth is expected for 2025 and 2026.
With estimates modestly increasing for sectors like Tech and Basic Materials, and decreasing for sectors like Energy and Medical, the overall earnings picture remains positive. Expectations for double-digit earnings growth in 2025 and 2026 show promise for investors looking to capitalize on the evolving market trends.
Read more at Nasdaq: Magnificent 7 Earnings Loom: What to Expect?