Zacks Earnings Trends Highlights: Nvidia and Meta Platforms
For Immediate Release
Chicago, IL – December 19, 2024 – Zacks Director of Research Sheraz Mian says, "For 2024 Q4, total S&P 500 earnings are currently expected to be up +7.4% from the same period last year on +4.8% higher revenues."
Earnings Growth Expected to Broaden Beyond Tech
Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
Tech Driving Earnings Growth
The Tech sector has been a significant growth driver in recent quarters, and the trend is expected to continue in 2024 Q4 and beyond. For Q4, Tech sector earnings are expected to be up +14.6% from the same period last year on +10% higher revenues, the 6 th quarter in a row of double-digit earnings growth.
This would follow the sector’s +22.5% earnings growth on +11% higher revenues in 2024 Q3. In addition to the Tech sector’s strong growth profile, the sector is also among the few sectors whose earnings outlook is steadily improving. This shows up in the revisions trend that remains positive for the Tech sector, both for Q4 and full year 2025.
Take the examples of Nvidia NVDA and Meta Platforms META. The current Q4 Zacks Consensus EPS estimate for Nvidia of 84 cents is up from 78 cents two months back. The same consensus EPS estimate for Meta of $6.76 has increased +7.1% over the last two months.
The Earnings Big Picture
Estimates for 2024 Q4 have declined since the quarter got underway, but the pace and magnitude of negative revisions is less than we had seen in the comparable period of Q3.
The expectation is for double-digit earnings growth in each of the next two years, with the number of sectors enjoying strong growth notably expanding from the narrow base we have been seeing lately.
Tech sector earnings are expected to be up +17.4% in 2025, which would follow the sector’s +19.8% earnings growth in 2024. But even excluding the Tech earnings, S&P 500 earnings would be up +12.3% in 2025, with nine of the 16 Zacks sectors expected to enjoy double-digit earnings growth.
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