According to the Zhitong Finance APP, the earnings report season for the fourth quarter of 2024 has begun. HSBC Holdings released a research report stating that the earnings expectations for the S&amp;P 500 Index in the fourth quarter of 2024 have been revised down in the past few months, but the year-on-year growth expectation still reaches about 12% (down from the previous expectation of 15% a few months ago), which is one of the highest earnings growth expectations since the first quarter of 2022.
HSBC stated that with the help of a low base, most industries will see strong year-on-year earnings growth, with certain sectors (such as finance, communication services, technology, consumer discretionary, and healthcare) expected to achieve double-digit year-on-year growth.
However, HSBC pointed out that on a quarter-on-quarter basis, the earnings growth expectation is only 0.6%, essentially flat; most industries are expected to see a quarter-on-quarter decline in earnings; the technology sector remains an &#34;outlier,&#34; expected to achieve strong quarter-on-quarter earnings growth, with an increase of 24%.
HSBC noted that the earnings growth of the &#34;seven giants&#34; of U.S. stocks—Apple, Nvidia, Microsoft, Alphabet, Meta, Tesla, and Amazon—is still expected to exceed the earnings growth of the other 493 constituent companies in the S&amp;P 500 Index. The latter's year-on-year earnings per share growth is expected to be 9%, continuing the trend of earnings recovery over the past few quarters, which is less than the 23% year-on-year earnings per share growth of the &#34;seven giants,&#34; but the gap is narrowing.
HSBC added that for the fourth quarter of 2024, earnings growth will be supported by strong expectations in sectors such as finance (year-on-year growth expected at 39%), communication services (year-on-year growth expected at 23%), and IT (year-on-year growth expected at 15%); energy stocks will continue to drag down earnings growth; earnings for consumer staples, industrials, and utilities are expected to remain flat or decline slightly.
In addition, HSBC also provided a list of potential winners and losers for the fourth quarter earnings report season.
Winners (Buy Rating):
Amazon (AMZN.US) — Ongoing cost reductions and efficiency improvements will continue to impact all segments, with strong growth momentum expected for Amazon Web Services (AWS) and advertising business.
Bank of America (BAC.US) — A long-term winner in the U.S. banking industry, with a clear path to sustainable positive operating leverage; management's outlook has enhanced expectations for continuous growth in net interest income (NII) through 2025, boosting investor confidence.
Hilton Hotels (HLT.US) — Due to its global diversification, extensive segment coverage, and strict execution, Hilton remains one of the most popular companies in the industry.
Intuitive Surgical (ISRG.US) — A pioneer in surgical robotics. Driven by general surgical procedures both domestically and internationally, its surgical volume is expected to maintain resilient growth.
Martin Marietta Materials (MLM.US) — Weather-related demand disruptions seem to have a smaller drag on fourth-quarter performance, with guidance for 2025 potentially stronger than expected.
Oracle (ORCL.US) — Due to the continued strong performance of Oracle Cloud Infrastructure (OCI), the company's revenue and profit margins will exceed market expectations
Royal Caribbean Cruises (RCL.US) - Accurately positioned in providing customer experiences in innovative ways; the products offered may drive market share growth and attract new customers into its vacation ecosystem.
Losers (downgrade rating):
AMD (AMD.US) - The company is expected to face more headwinds, as its artificial intelligence (AI) GPU roadmap is not as competitive as previously imagined

AMZN

HSBC Holdings released a research report stating that the S&P 500 index's earnings expectations for the fourth quarter of 2024 are expected to increase by approximately 12% year-on-year, down from the previous 15%. Although the quarter-on-quarter growth is only 0.6%, the technology sector is expected to achieve a quarter-on-quarter growth of 24%. The earnings growth of the "seven giants" in the U.S. stock market is expected to exceed that of the other 493 constituent stocks, which have a year-on-year earnings per share growth of 9%. Winners include Amazon, which is expected to see strong growth in its cloud computing and advertising businesses

- The fourth quarter earnings season for 2024 has begun, with HSBC reporting a downward adjustment in S&P 500 earnings expectations, now projected to grow by about 12% year-on-year.  
- Strong growth is anticipated in sectors like finance, communication services, technology, and healthcare, while the tech sector is expected to see a robust quarter-on-quarter growth of 24%.  
- Potential winners include Amazon and Bank of America, while AMD is downgraded due to competitive challenges in its AI GPU roadmap.

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