Positive: Q2 earnings stable with positive outlook, Tech sector expected to see significant growth.

From Nasdaq: 2024-08-07 19:35:00

The Q2 earnings season shows stability with a positive outlook, but estimates for the current period are weakening. S&P 500 earnings are up +10.6% from last year, with 79.8% beating EPS estimates. The ‘Mag 7’ companies are expected to have +33.5% earnings growth, but market concerns linger over rising capex levels, particularly in AI projects.

Tech sector earnings are expected to be up +20.6% for Q2, with positive revisions. For 2024, Tech sector earnings are expected to rise +17.5%. Record margins and a focus on software and services contribute to the sector’s positive outlook. Full-year 2024 S&P 500 earnings are projected to grow +4.7% from last year on +4.7% higher revenues.

Estimates for the current earnings period have declined, with negative revisions across various sectors. Tech and Finance sectors are the exceptions with positive estimate revisions. Expectations for higher margins in 2024 indicate a positive earnings outlook. About half of this year’s earnings growth is attributed to revenue growth, with margin gains making up the rest.



Read more at Nasdaq: A Closer Look at the Current Earnings Picture