Big Tech companies set to report Q3 earnings, Tesla's margin gains creates high expectations

From Nasdaq MarketSite: 2024-10-25 17:34:00

Tesla started off the Q3 reporting cycle for the Mag 7 companies with strong margin gains. This week, Alphabet, Meta, Microsoft, Amazon, and Apple are set to report. Despite Tesla’s bounce, the stock is the laggard of the Mag 7. Alphabet faced a stock drop last earnings season despite strong results, attributed to high AI-centric spending. The Mag 7 group is expected to have +16.9% earnings growth in Q3.

The Q3 earnings season saw results from 182 S&P 500 members, with total earnings down -2.1% and +4.5% revenue growth. 75.8% beat EPS estimates and 58.8% beat revenue estimates. For the full S&P 500 index, Q3 earnings are expected to be up +1.5%. Q4 earnings are projected to be up +9%.

Overall, the earnings picture for this year shows a +7.3% growth, improving to +9.2% ex-Energy. Looking ahead, double-digit earnings gains are forecasted for 2025 and 2026. The Mag 7 earnings performances will set the tone for the rest of the Q3 earnings season.



Read more at Nasdaq MarketSite:: Previewing Big Tech Earnings | Nasdaq