This Week in Earnings – Q4’24 Technology in our Sector Beat The Tech sector is seeing broad momentum entering 2025, fueled by AI-driven demand, stable software spending, and expectations for a supportive U.S. policy environment. However, not all pockets of the industry are benefiting equally — while semiconductors, cloud, and enterprise software continue to see
Demand trends are mixed across the sector, with relative pockets of strength among travel/leisure, restaurant/QSRs, and lifestyle apparel names (with some noting good momentum into Q1 and a resilient consumer). On the other end of the spectrum, the group has seen its share of Q4 disappointments and lower-than-expected guides, with those tied to automotive/recreational vehicles and housing continuing to face a challenging demand backdrop amid still-elevated interest rates.
Overall performances across the Industrial sector are mixed at this stage in the Q4 reporting season, reflecting the diverse industries across the group.
Big Banks kicked off Q4 earnings season on a positive note, largely delivering results that topped Street expectations on both the top- and bottom-lines, with net interest income (NII) guidance for 2025 also well-received by analysts. Overall results have been powered by strength in capital markets, investment banking, and trading activity.
As we wrap up our coverage of Q3’24 earnings season, it’s clear that macro uncertainty remains top of mind with commentary heavily influenced by the U.S. election, questions around the path of Fed rate cuts, and heightened geopolitical turmoil.
This earnings season, executive commentary across the Materials sector reflects a continuation of downbeat trends observed, with executives navigating choppy conditions and elevated macro uncertainty.
Broadly, executives point to a continuation of consumer trends seen in recent quarters, with affordability and strained budgets shifting spending away from higher-ticket discretionary items.
While performances have varied from company to company, EPS beats for the roughly 45% of S&P 500 Industrials that have reported Q3 figures have so far come in at a healthy clip — 65% have topped consensus.
Continuing last quarter’s earnings season trend, U.S. Banks are largely reporting strong results relative to Street expectations with most posting solid Q3 beats on the top- and bottom-line.
As we do every quarter, we analyzed the earnings communication trends of 30 off-cycle companies reporting between September 3 and October 3, 2024, to identify important themes and precedence. These companies span market cap sizes and sectors.
