{"id":135805,"date":"2025-03-15T20:18:27","date_gmt":"2025-03-15T20:18:27","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/finance\/q4-earnings-wrap-nasdaq\/"},"modified":"2025-03-15T20:18:27","modified_gmt":"2025-03-15T20:18:27","slug":"q4-earnings-wrap-nasdaq","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=135805","title":{"rendered":"Q4 Earnings Wrap | Nasdaq"},"content":{"rendered":"


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10 of 11 Large Cap sectors see positive earnings growth \u2013 most in 3 years<\/strong><\/p>\n

It\u2019s the (unofficial) end of earnings season, with NVDA reporting earnings yesterday afternoon (they beat<\/a>, with +71% YoY earnings growth).<\/p>\n

And it turned out to be a really strong quarter (for large caps).<\/p>\n

When we did our Q4 earnings preview<\/a> a month ago, analysts projected that 4 sectors (Staples, Industrials, Materials, and Energy) would see negative earnings growth (partly due to headwinds from rates and a -10% YoY drop in Energy prices).<\/p>\n

Fast forward a month, and only Energy is on track for negative earnings growth. 10 sectors in positive territory is the most in three years.<\/p>\n

And, as we highlighted last summer, it\u2019s a sign that earnings are really broadening<\/a> out beyond the Mag 7.<\/p>\n

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\n\"S&P<\/p>\n

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Broad-based earnings growth for Large Caps, Financials strength ends Small Cap earnings recession<\/strong><\/p>\n

This broad-based strength helped drive the highest earnings growth for the S&P 500 (chart below, orange bar) in three years, and the highest for the Nasdaq-100 (lighter blue bar) in one year.<\/p>\n

For small caps, earnings were not<\/u> broad-based, with four sectors in negative territory. Yet, for the first time in 2\u00bd years, small caps saw positive earnings growth (green bar). Earnings recession over.<\/p>\n

Much of the rebound for small caps came from Financials, which saw +31% YoY earnings growth. As we discussed in our earnings preview, Financials benefitted<\/a> from the election boosting trading revenues, and post-election optimism increasing lending and dealmaking. (Mid cap Financials also saw +25% YoY earnings growth, but that wasn\u2019t enough to offset negative earnings growth in four sectors).<\/p>\n

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\n\"Q4<\/p>\n

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2025 earnings growth expected to hold up (Large Caps) or turn solidly positive (Small & Mid Caps)<\/strong><\/p>\n

So, after a mostly strong end to 2024, the question is whether earnings can stay strong\u2026 or improve in 2025.<\/p>\n

And right now, analysts are optimistic (chart below). Earnings growth is either expected to stay strong in 2025 (Nasdaq-100\u00ae and S&P 500) or turn solidly positive (S&P 400 and 600).<\/p>\n

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\n\"Annual<\/p>\n

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For mid caps and small caps, it\u2019s easy to see why this is:<\/p>\n