News

Earnings season continues to wind down, with the period reflecting positivity. We’ve heard from over 460 S&P 500 companies, with this week’s reporting docket primarily dominated by retail.

Total earnings for the S&P 500 members that have reported Q1 results are up +4.8% from the same period last year on +4.1% higher revenues. The earnings growth pace reflects an acceleration relative to other periods, undoubtedly a positive development.

Estimates for the coming 2024 Q2 cycle have been trending higher, reflecting optimism among analysts.

So far, several companies, including Apple AAPL, Eli Lilly LLY, and Crocs CROX, have seen post-earnings positivity. Let’s take a closer look at each.

Apple

Concerning headline figures, the company posted a 1.3% beat relative to the Zacks Consensus EPS estimate and posted sales 1% ahead of expectations. It reflected the company’s fifth consecutive double-beat, owing to its ability to positively surprise investors.

Notably, the tech titan announced the biggest buyback in corporate history totaling $110 billion. Reflecting further positivity, Apple also unveiled a 4% boost to its quarterly payout, reflecting the 12^th consecutive year of higher payouts.

Earnings expectations have increased since the release, reflecting analysts’ optimistic view.

Image Source: Zacks Investment Research

The company’s growth profile remains positive, with current expectations alluding to a 7% pop in earnings on modestly higher sales in its current fiscal year (FY24). Peeking ahead to FY25, estimates allude to an additional 9.6% climb in earnings paired with a 5.5% sales bump.

Image Source: Zacks Investment Research

Eli Lilly

Eli Lilly posted EPS of $2.58 and sales of $8.8 billion, reflecting growth rates of 46% and 26%, respectively. Revenue growth was driven by strong demand, causing LLY to up its full-year revenue guidance by $2 billion.

The revisions trend for its current fiscal year has been notably bullish, up 10% over the last year to $13.37 per share and suggesting 110% year-over-year growth. Sales growth is forecasted to be robust as well, with the current $43 billion estimate 26% higher than FY23.

Image Source: Zacks Investment Research

Sales growth is forecasted to be robust as well, with the current $43 billion estimate 26% higher than FY23.

Image Source: Zacks Investment Research

It’s worth noting that the company has increasingly rewarded its shareholders over the years, boasting a 15% five-year annualized dividend growth rate.

Image Source: Zacks Investment Research

Crocs

Crocs continued its earnings positivity, posting a 34% beat relative to the Zacks Consensus EPS estimate and reporting sales 6% ahead of expectations. Impressively, the company has exceeded our consensus EPS estimate by an average of 17% across its last four quarterly releases.

Q1 revenue of $939 million grew 6% year-over-year, also reflecting a quarterly record. The company raised its adjusted EPS guidance following the favorable quarter, further showing positivity. Below is a chart illustrating the company’s revenue on a quarterly basis.

Image Source: Zacks Investment Research

CROX shares have been notably strong in 2024, gaining 50% compared to the S&P500’s 12% gain. The stock is a Zacks Rank #2 (Buy).

Bottom Line

Overall, the 2024 Q1 earnings season has reflected positivity, underpinned by the technology sector’s strong growth.

And concerning positive surprises, all three stocks above – Apple AAPL, Eli Lilly LLY, and Crocs CROX – delivered just that, also enjoying post-earnings buying pressure.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.