ADP(ADP) ZACKS·2025-01-28 12:41Earnings 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 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]