Positive. Q3 earnings show growth, especially for 'Magnificent 7' companies in the Tech sector.

From Nasdaq: 2024-10-23 18:47:00

Total Q3 earnings for 120 S&P 500 members are up +1.9% with revenues +4.2%. 79.2% beat EPS estimates and 63.3% beat revenue estimates. Earnings growth pace slowing compared to earlier quarters. Q3 total S&P 500 earnings expected to be up +3.0% with +4.9% higher revenues. ‘Magnificent 7′ companies’ earnings up +16.2%. Shift in market leadership for Tech sector.

Tech sector, Mag 7 companies reporting Q3 results next week. Market anxiety over AI capital expenditures without clear monetization plans. Current shift in market trend shown in year-to-date chart. These mega-cap companies are seeing sustainable profitability growth with Q3 earnings of $112.4 billion on $487.3 billion in revenues.

The Mag 7 companies are set to account for 21.3% of all S&P 500 earnings in Q3. Without their contribution, Q3 earnings for the rest of the index would be negative. Q3 earnings for S&P 500 index expected to be up +3.0% with +4.9% higher revenues. Energy sector drag causing negative impact on quarterly earnings.

Q4 estimates seeing positive growth with +9.1% S&P 500 earnings and +5.3% higher revenues. Revision of estimates not as severe as in Q3. Annual earnings growth at +7.4% with revenue gains at +1.9%. About half of earnings growth comes from revenue gains. Earnings outlook positive for future quarters.



Read more at Nasdaq:: Mag 7 Earnings Loom: What Can Investors Expect?