Zacks Earnings Preview includes Tesla, Microsoft, Meta Platforms, and Apple

From Nasdaq: 2025-01-27 10:58:00

Zacks.com released the list of companies likely to issue earnings surprises, including Tesla, Microsoft, Meta Platforms, and Apple. This week, we see Tesla, Microsoft, and Meta Platforms reporting on Wednesday, January 29th, and Apple on Thursday, January 30th. Apple shares have struggled, losing about 15% of their value recently due to concerns about China and its AI strategy.

Tesla shares have been soaring, up more than +85% since the last quarterly release, with market participants optimistic about its competitive challenges. On the other hand, Apple is facing downbeat sentiment, with bearish analysts projecting a guidance cut. Estimates for fiscal year 2025 for Apple have been under pressure.

Unlike Tesla and Apple, Microsoft is facing concerns about its capex overhang, with heavy investments in AI infrastructure without a clear monetization plan. The market is also watching Alphabet, Amazon, and Meta for similar issues, particularly Alphabet’s potential risk to its search monopoly due to AI investments.

The Q4 earnings season saw total earnings for S&P 500 companies up +17.4% from the same period last year on +6.2% higher revenues. The Finance sector reported total earnings up +27.5% from last year, with all companies beating EPS estimates. The week ahead will see key earnings reports from companies like Boeing, GM, Starbucks, and more, alongside the Mag 7 players.

The broad-based positive sentiment for the 2025 earnings growth is driven by all 16 Zacks sectors expected to enjoy positive growth, with 8 sectors projected to achieve double-digit growth. For more insights on the earnings picture, check out Zacks’ weekly Earnings Trends report.

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