Zacks Earnings Trends Highlights: Nvidia and Meta

In the latest earnings trends report, Nvidia and Meta have emerged as significant players in the ongoing earnings landscape. This report sheds light on their performance as it relates to broader market trends.

Positive Earnings Growth Ahead

Analysts are optimistic that overall earnings for the S&P 500 in Q4 2024 will witness a notable increase, projected to rise by +7.4% compared to the same quarter last year, aided by a +4.8% increase in revenues. When excluding the struggling Energy sector, growth expectations improve further to +9.6%. However, the outlook slightly dims to +3.8% when the large contributions from the Tech sector—an area where Nvidia and Meta thrive—are also excluded.

Technology Sector Leading the Charge

The Tech sector continues to showcase robust growth, with projections indicating earnings will surge by +14.9% in Q4 2024 compared to the previous year, supported by +10.4% higher revenues. This marks the sixth consecutive quarter of double-digit earnings growth for the sector.

Following an impressive performance in Q3, where the sector reported +22.6% earnings growth with a +11% increase in revenues, the trajectory for continued growth remains strong. The earnings outlook for the Tech sector is also improving, as reflected in the upward revisions for both Q4 2024 and the full year of 2025.

Specifically, Nvidia is experiencing a positive upward trend, with the current Zacks Consensus EPS estimate for Q4 at 84 cents, an increase from 78 cents in the prior two months. Similarly, Meta Platforms has seen its EPS estimate rise to $6.76, reflecting a +7.1% increase over the same timeframe.

A Bright Earnings Outlook

The broader expectation is for double-digit earnings growth across various sectors over the next couple of years. Particularly for the Tech sector, earnings are set to grow by +16.9% in 2025, following a robust +20.0% growth in 2024. Even without considering the Tech sector, S&P 500 earnings are projected to rise by +12.3% in 2025, as nine of the 16 Zacks sectors are expected to boast double-digit growth.

Conclusion

With promising developments in the earnings landscape for companies like Nvidia and Meta, coupled with general optimism across multiple sectors, investors can look forward to a period of growth and resilience in the market.

earnings, growth, technology