Today's Research Daily features the real-time scorecard for the ongoing Q4 earnings season and new research reports on 16 major stocks, including Walmart Inc. (WMT), Marvell Technology, Inc. (MRVL) and Amphenol Corporation (APH). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Start Trading in the Green
Q4 Earnings Season Scorecard
Including this morning's releases, we now have Q4 results from 48 S&P 500 members. Total earnings for these 48 index members are up +21.3% from the same period last year on +6.8% higher revenues, with 83.3% beating EPS estimates and 70.8% beating revenue estimates.
This is a notably better showing relative to what we have seen from this group of 48 S&P 500 members in other recent periods, both in terms of the growth pace as well as beats proportions.
Looking at Q4 as a whole, combining the actual results from the 48 index members with estimates for the still-to-come companies, total S&P 500 earnings are expected to be up +8.6% on +4.8% higher revenues.
For full-year 2025, the expectation is for S&P 500 earnings are expected to be up +13.7% on +5.4% higher revenues. This will be the first time since 2018 when all 16 Zacks sectors are expected to enjoy posiitve earnings growth, with 10 of the 16 Zacks sectors expected to have double-digit earnings growth.
Our earnings analysis reflects bottom-up expectations, with the Zacks Consensus estimates for each S&P 500 member aggregted to the respective sector and index level.
In terms of the 'index-level EPS', the +13.7% aggregate earnings growth in 2025 works out to $263.75 per 'index share'. This compares to the top-down consensus of sell-side strategists of $274.50, with a range of $285 per share on the high side and $270 on the low side. What this shows you is that the Zacks bottom-up estimate for 2025 earnings is below even the lower end of the top-down consensus.
For more details about the ongoing Q4 earnings season and evolving expectations for the coming periods, please check out our weekly Earnings Trends report here >>>>Q4 Earnings Season Kicks-off Strong
Today's Featured Research Reports
Walmart shares have outperformed the Zacks Retail - Supermarkets industry over the past year (+74% vs. +68.4%). The company is benefiting from its diverse business model that spans multiple segments, channels and formats. The company's strong omnichannel strategy has boosted traffic across physical stores and digital platforms.
Its emphasis on improving delivery services has been successful, contributing to steady grocery market share gains. Upsides like these, along with growth in the advertising business, fueled third-quarter fiscal 2025 results, wherein the top and bottom lines grew year over year, and e-commerce sales surged.
However, Walmart is experiencing adverse currency movements and margin pressures from shifts in product mix. While raising its fiscal 2025 guidance, the company’s implied fourth-quarter view for revenues and operating income reflects a slowdown from the reported third-quarter figures.
(You can read the full research report on Walmart here >>>)
Shares of Marvell Technology have outperformed the Zacks Electronics - Semiconductors industry over the past year (+93.3% vs. +58.5%). The company is benefiting from the strong demand environment across the data center end market.
In Q3, its data center end market revenues increased 98% year over year and 25% sequentially, propelled by strong revenue growth across artificial intelligence (AI)-driven demand for PAM products and ZR electro-optics. Completion of inventory digestions is likely to aid growth across the enterprise networking and carrier infrastructure end markets.
However, weakening consumer spending amid the protracted high inflationary conditions and still-high interest rates is likely to hurt its sales across the Consumer segment. Enterprises are postponing their large IT spending plans amid the ongoing macroeconomic uncertainties. This is likely to hurt its performance in the near term.
(You can read the full research report on Marvell Technology here >>>)
Amphenol shares have gained +4% over the past six months against the Zacks Electronics - Connectors industry’s gain of +5.2%. The company is benefiting from its strong portfolio of solutions, including high-technology interconnect products. Expanding spending on both current and next-generation defense technologies bodes well for APH’s top-line growth.
Apart from Defense, Amphenol’s prospects ride on strong demand for its solutions across Commercial Air, Industrial, and Mobile devices. APH expects sales in the defense market to increase moderately on a sequential basis. For 2024, it expects mid-teens increase in sales from the Defense market.
Amphenol’s diversified business model lowers the volatility of individual end markets and geographies. Strong cash flow generating ability is noteworthy. Amphenol expects to deliver strong cash flow despite slight rise in capital expenditure.
(You can read the full research report on Amphenol here >>>)
Other noteworthy reports we are featuring today include Honeywell International Inc. (HON), Kinder Morgan, Inc. (KMI) and LPL Financial Holdings Inc. (LPLA).
Director of Research
Sheraz Mian
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Walmart (WMT) Benefits from Impressive E-Commerce Operations
Solid Demand Across Data Center Market Aid Marvell (MRVL)
End-Market Strength & Diversification Aids Amphenol (APH)
Featured Reports
Aerospace Technologies Unit Aids Honeywell (HON), Costs Hurt Per the Zacks analyst, Honeywell will benefit from strength in the Aerospace Technologies segment, led by strong demand in commercial aviation aftermarket. However, high costs remain concerning.
Buyouts, Advisory Fees Aid LPL Financial (LPLA), Costs High Per the Zacks analyst, strategic acquisitions to boost client base, advisory revenues, and solid balance sheet will likely aid LPL Financial. Yet, high costs and volatile commission revenues are woes.
Rising Admissions & Strong Cash Position Aid Tenet Healthcare (THC) Per the Zacks Analyst, rising admissions and a favorable payor mix drive Tenet Healthcare's organic growth. A solid cash position also bodes well.
Dividends & Buyback Aid C.H. Robinson (CHRW) Amid High Debt Per the Zacks Analyst, C.H. Robinson's measures to reward shareholders through dividends and share buybacks are encouraging. High debt remains a concern.
Product Innovation Aid Acuity Brands (AYI), Macro Woes Ail Per the Zacks analyst, Acuity Brands benefits from product innovation and in-organic moves. However, high cost and volatile business environment are concerns.
Investments Aid OGE Energy (OGE) Amid Supply Chain Issues Per the Zacks analyst, OGE Energy makes systematic investments to strengthen its infrastructure. Yet supply chain issues might result in delays and thereby increase OGE's costs.
Strong Portfolio Buoys Cirrus Logic (CRUS) Amid High Costs Per the Zacks analyst, steady growth in high-performance mixed-signal and audio segments is boosting Cirrus Logic's performance. Rising costs are likely to put pressure on its margins.
New Upgrades
Kinder Morgan (KMI) Banks on Secured Take-or-Pay Contracts Per the Zacks analyst, Kinder Morgan's resilient business model, backed by take-or-pay contracts, ensures steady earnings. It is well-positioned to capitalize on the natural gas demand surge.
News Corp (NWSA) Boosts Digital Offerings to Lift Revenues Per the Zacks analyst, News Corp is augmenting its revenue streams through strategic buyouts, operational enhancement and enhanced digital offerings. It is also focusing on real estate businesses.
Market Share Gains, Cost Cuts Aid National Vision (EYE) The Zacks analyst is impressed with National Vision's Owned and Host arm steadily gaining market share. Disciplined cost management and capital deployments are expected to improve profitability.
New Downgrades
Ongoing Litigations, High Debt Weigh on Bayer (BAYRY) Per the Zacks analyst, high debt and ongoing litigations are major concerns for Bayer. Declines in glyphosate-based products in the Crop Science division has also impacted growth.
Weak Demand, Lower Siloxane Prices Ail Dow (DOW) Per the Zacks analyst, Dow faces headwinds from weaker demand in Europe due to lower consumer spending. Weaker siloxane prices will also exert pressure on its margins.
Dismal Comps & High Costs Hurt Jack in the Box (JACK) Per the Zacks analyst, Jack in the Box's performance is being hurt by dismal comps stemming from reduced transactions and an unfavorable mix shift. Also, high labor and utility costs are a concern.
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