Earnings Picture Remains Strong: A Closer Look

Notable Earnings Results - Netflix has emerged as the streaming leader, with significant growth attributed to its ad-supported subscription tier, resulting in a doubling of Q4 earnings year-over-year [3] - Johnson & Johnson's stock has underperformed, down 9.7% over the past year, despite beating earnings estimates; however, its 2025 revenue guidance is below consensus [4] Earnings Performance Overview - For Q4, earnings for 62 S&P 500 companies are up 19.6% year-over-year, with revenues increasing by 8.4%; 82.3% of companies beat EPS estimates and 69.4% exceeded revenue estimates [5] - The Finance sector shows a strong performance with total earnings up 26.2% and revenues up 10.9% year-over-year, with all companies beating EPS estimates [5] Sector Growth Projections - The Tech sector is projected to see earnings growth of 14.9% and revenue growth of 10.1% in Q4, marking the sixth consecutive quarter of double-digit earnings growth [7] - Expectations for 2025 indicate that all 16 Zacks sectors will achieve positive earnings growth, with 8 sectors expected to produce double-digit growth [14]