S&P 500 Earnings Update: As of the latest report, total earnings for 453 S&P 500 companies reporting Q4 results have increased by 12.2% compared to the prior year, alongside an 8.7% rise in revenues. Notably, 75.1% of these companies exceeded EPS estimates while 73.1% surpassed revenue forecasts. Projections for total Q4 earnings anticipate a 13.2% increase and a 9.2% rise in revenues, marking the 10th consecutive quarter of positive earnings growth.
Retail Sector Performance: In the retail sector, Walmart’s Q4 earnings saw a 6.9% increase year-over-year, with a revenue rise of 8.6%. Walmart’s same-store sales rose by 4.6%, exceeding estimates. Home Depot reported same-store sales growth of 0.4%, also above expectations. For the 22 reported retail companies in the S&P 500, 50% exceeded EPS estimates, while 77.3% surpassed revenue expectations.
Amazon’s Contribution: Amazon’s Q4 results indicated a 5.9% increase in earnings and a 13.6% rise in revenues. Overall, the retail sector anticipates a 5.6% growth in earnings and 7% in revenues for Q4 2025. Projections indicate a 12.1% increase in sector earnings for 2025, albeit a decrease once Amazon’s numbers are excluded.
