Fourth-Quarter Earnings Are Beating the Street’s Estimates. Here’s How Much | Global News Avenue

The fourth quarter revenue was stronger than Wall Street expected.

By Friday, the latest quarterly results came from more than three-fifths of the S&P 500, with earnings per share higher than analysts’ expectations, according to FactSet. This is consistent with the five-year average, slightly above the 10-year average.

Fartset said the average annual earnings growth of the converged (the expectations of unreported companies have already been combined) is more than 16%, more than 16%, up from nearly 12% in the third quarter. If the current level holds, this will mark the best performance of the measure since the last quarter of 2021.

Relative to estimates, income is cooler. FACTSET said 63% of companies beat revenue estimates, below the five- and 10-year average.

“The factors driving these earnings gains include stable economic growth, substantial AI investment, related productivity gains, enhanced profit margins and deregulation, especially for financial and energy companies,” LPL Financial said. “Tariffs will offset some of these positive income drivers, though to what extent is an open question.”

Executives expressed uncertainty about the Trump administration’s trade policy and its uncertainty that could affect their business during the revenue call. According to FactSet analysis, the number of companies referring to tariffs has reached the highest level in 10 years.

Another busy week of income reports is on the way. McDonald’s(MCD) Report Today’s results; numbers from Coca-Cola (That), shopify(Shop), Cisco (CSCO) and airbnb (Abnb)yes Expires later this week.