Analysis of Q3 and Q4 ’24 EPS and Revenue Growth
As the world’s top investment manager, it is crucial to stay informed about the latest trends in EPS and revenue growth. Here is a detailed analysis of how Q3 and Q4 ’24 have been trending since early ’24:
Key Insights:
- The data is sourced from LSEG and updated weekly.
- Expected Q3 EPS and revenue growth for the S&P 500 is projected to bottom within the next two weeks.
- Once Q3 ’24 financial results are released, quarterly EPS and revenue growth are expected to increase.
Sector Performance:
Energy sector is facing a tough comparison from Q3 ’23, with an expected EPS decline of -20% in Q3 ’24.
Technology Sector:
- Technology sector is expected to have the highest y-o-y EPS growth at 15%.
S&P 500 Data:
- The forward 4-quarter estimate fell to $257.47 from last week’s $258.76.
- PE ratio on the forward estimate is 22.3.
- S&P 500 earnings yield has been declining steadily.
- “Upside surprise” in quarterly earnings results fell to 4.6%.
Expected Forward Estimates:
- Q3 ’24 – Q2 ’25: $257.47
- Q4 ’24 – Q3 ’25: $267’ish
- Q1 ’25 – Q4 ’25: $277.28
It is important to monitor how these estimates change as Q3 ’24 earnings are released.
Conclusion:
The stalling out of the top 10 mega-cap names in the S&P 500 indicates subtle shifts in the market.
Technology sector faces tough comps in Q3 and Q4 ’24.
China saw significant increases in YTD returns this week, impacting emerging market benchmarks.
Disclosure: None of this is advice or a recommendation, but only an opinion. Past performance is no guarantee of future results. All S&P 500 EPS and revenue data is sourced from LSEG, unless specifically noted. Investing can involve the loss of principal even for short periods. Readers should assess their own comfort with portfolio volatility and adjust accordingly if needed.
Thanks for reading.