Earnings Season Overview - The fourth-quarter 2024 earnings season is in its initial stage, with results aligning with expectations. As of January 24, 78 S&P 500 companies reported total earnings up 17.4% year over year on 6.2% higher revenues, with 83.3% beating EPS estimates and 66.7% beating revenue estimates [1] Third Quarter Earnings Expectations - For the third quarter, total earnings for the S&P 500 Index are expected to rise 9.2% year over year on 4.8% higher revenues, following an 8.4% EPS growth on 5.5% higher revenues in the previous quarter [2] Upcoming Earnings Reports - Four "Magnificent 7" companies will report earnings this week, along with several other major firms. Investing in these companies, which are expected to beat earnings, could yield solid returns [3][5] Notable Stocks to Watch - Five large-cap stocks identified for potential investment ahead of earnings results include Cardinal Health Inc. (CAH), Logitech International S.A. (LOGI), ServiceNow Inc. (NOW), Corning Inc. (GLW), and Automatic Data Processing Inc. (ADP) [4][5] Cardinal Health Inc. Insights - Cardinal Health anticipates a 4-6% revenue decline in its Pharmaceutical segment due to a $39 billion revenue headwind from the OptumRx contract expiration in June 2024, but segment profit is expected to increase by 4-6% [7] - The company is expanding its medical distribution centers and investing in specialty care, with an Earnings ESP of +0.42% [8] Logitech International S.A. Insights - Logitech's strong quarterly results indicate recovery from the post-pandemic downturn, with increasing demand for video collaboration tools due to hybrid work trends [10] - The company has an Earnings ESP of +2.83% and is expected to benefit from partnerships with cloud providers [11] ServiceNow Inc. Insights - ServiceNow is experiencing growth from digital transformation initiatives, with a 14% year-over-year increase in customers with over $1 million in annual contract value [15] - The company has an Earnings ESP of +0.91% and is set to report strong revenue growth of 21.2% year over year [17] Corning Inc. Insights - Corning is benefiting from the increasing demand for fiber optics and mobile devices, with expected revenue growth of 14.9% year over year [18][19] - The company has an Earnings ESP of +2.05% and is positioned well for growth in AI applications [19] Automatic Data Processing Inc. Insights - ADP aims to grow through a three-tier business strategy and acquisitions, appealing to dividend-seeking investors [22] - The company has an Earnings ESP of +1.15% and is expected to report a revenue increase of 6.4% year over year [24]

Automatic Data Processing, Inc. (ADP) is scheduled to release its second-quarter fiscal 2025 results on Jan. 29, before market open.See Zacks Earnings Calendar to stay ahead of market-making news.ADP has a decent earnings surprise history, surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 3.2%.Automatic Data Processing’s Q2 ExpectationsThe Zacks Consensus Estimate for the top line is pegged at $5 billion, implying a 6.4% increase on a year-over-year basis. We ...

Earnings Expectations - Wall Street expects Automatic Data Processing (ADP) to report a year-over-year increase in earnings and revenues for the quarter ended December 2024 [1] - The stock price may move higher if the actual results exceed expectations, or lower if they miss, with the earnings report expected on January 29 [2] - The sustainability of the stock price change will depend on management's discussion of business conditions during the earnings call [2] Financial Estimates - ADP is expected to post quarterly earnings of $2.27 per share, representing a year-over-year increase of 6.6% [3] - Revenues are expected to be $4.97 billion, up 6.4% from the year-ago quarter [3] - The consensus EPS estimate has remained unchanged over the last 30 days, reflecting analysts' reassessment of initial estimates [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the former being a more recent version [6] - A positive Earnings ESP indicates a likely deviation of actual earnings from the consensus estimate, with predictive power significant for positive readings only [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) produce a positive surprise nearly 70% of the time [8] ADP's Earnings Outlook - For ADP, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.15% [10] - The stock currently carries a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11] - ADP has beaten consensus EPS estimates in each of the last four quarters, with a surprise of +5.91% in the last reported quarter [12][13] Investment Considerations - An earnings beat or miss may not be the sole basis for a stock's movement, as other factors can influence investor sentiment [14] - Betting on stocks expected to beat earnings expectations increases the odds of success, making it important to check a company's Earnings ESP and Zacks Rank ahead of its quarterly release [15] - ADP appears to be a compelling earnings-beat candidate, but investors should also consider other factors before making investment decisions [16]

Pre-market futures are down pretty heavily this morning on fresh economic data. The Dow shot down -350 points, if just temporarily, while the S&P 500 was -60 and the Nasdaq -250 points. We’re now in negative territory trading for the week.BLS Jobs Reach 256K, Unemployment Rate 4.1%The long-awaited Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) is out this morning, and it’s a classic good news/bad news situation. The good news? We see a much stronger labor market than expected. Th ...

Stock markets will suspend trading this Thursday, taking a traditional pause for the funeral of a former head of state. James Earl Carter, Jr., known as Jimmy even during his years in the White House (1977-80), was the 39th President of the U.S. He lived to be 100 — the first ex-president in 235 years of presidents to do so.Carter was also a highly visible altruist following his tenure in office, helping build houses for the poor via his connection with Habitat for Humanity, among other things. The former G ...

Thursday, January 9, 2025Stock markets will suspend trading this Thursday, taking a traditional pause for the funeral of a former head of state. James Earl Carter, Jr., known as Jimmy even during his years in the White House (1977-80), was the 39th President of the U.S. He lived to be 100 — the first ex-president in 235 years of presidents to do so.Carter was also a highly visible altruist following his tenure in office, helping build houses for the poor via his connection with Habitat for Humanity, among o ...

Pre-market futures have fluctuated a bit, with new labor market data out ahead of the opening bell. Futures had been slightly negative, then went slightly positive on the economic news, and now we’re back in the red: the Dow is -15 points, the S&P -5 and the Nasdaq -25 points. Ten-year bond yields have now climbed above +4.7%, and the spread between it and 2-year yields is now the highest we’ve seen in, literally, years.ADP Private-Sector Payrolls Lower than ExpectedThe expected jobs numbers out this mornin ...

Wednesday, January 8, 2025Pre-market futures have fluctuated a bit, with new labor market data out ahead of the opening bell. Futures had been slightly negative, then went slightly positive on the economic news, and now we’re back in the red: the Dow is -15 points, the S&P -5 and the Nasdaq -25 points. Ten-year bond yields have now climbed above +4.7%, and the spread between it and 2-year yields is now the highest we’ve seen in, literally, years.ADP Private-Sector Payrolls Lower than ExpectedThe expected jo ...

Tuesday, January 7, 2025Market indexes began the trading day in positive territory, but relinquished it on monthly economic data that was released shortly after the open. The Dow dropped -178 points, -0.44%, and it was the leader among major indexes. Both the S&P 500 and Nasdaq lost their two-day winning streak, -1.11% and -1.88%, respectively today. (The Nasdaq basically gave back yesterday’s gains.) And the small-cap Russell 2000 slipped -0.97% on the session.JOLTS Data Indicates Flat-to-Down Labor Market ...

In this first full trading week of the new year, pre-market futures are up again this morning, after a Friday trading session that saw both the Dow and the Nasdaq raise by more than +300 points each. At this hour, the Dow is up an additional +185 points, the Nasdaq +220 and the S&P 500 +45.The trading lows for the month were from the first trading day of 2025, on Thursday. Perhaps we’re seeing a bit more hopeful sentiment as we are now two weeks from a new Trump administration taking over the White House. D ...