Zacks Highlights Earnings Surprises for Nvidia, Micron, Alphabet, and Nike

Zacks.com has released its earnings preview for the upcoming quarter, highlighting several key companies expected to deliver significant earnings surprises. Among the notable names are Nvidia (NVDA), Micron (MU), Alphabet (GOOGL), and Nike (NKE). The market's recent positive reaction to soft labor data has been attributed to reduced odds of another Fed rate hike, which has bolstered investor confidence despite a moderating macroeconomic backdrop.

The overall earnings outlook remains robust, with S&P 500 earnings projected to increase by +24.6% year-over-year, marking the eighth consecutive quarter of double-digit growth. The Tech sector continues to be a major growth driver, though momentum is broad-based across 15 of the 16 Zacks sectors. Positive estimate revisions have expanded significantly, covering sectors like Transportation, Finance, Aerospace, Industrials, Utilities, and Autos, in addition to Tech and Energy.

Nvidia, Micron, and Alphabet have been standout performers, with Nvidia's Q3 earnings expected to surge +90% year-over-year on +91.2% higher revenues. Alphabet's earnings are anticipated to rise +2.8%, while Micron's recent earnings skyrocketed +1075.7% from the year-earlier level. The Q3 earnings season officially kicks off on October 13th with reports from major banks, but early results from companies like Nike and Micron have already shown strong earnings and revenue growth.

Among the 16 S&P 500 members that have reported Q3 results so far, total earnings are up +188.3% from the same period last year on +31.7% higher revenues. However, this growth is largely driven by Micron's extraordinary performance. Excluding Micron, Q3 earnings for the remaining 15 index members would be up just +11.7%. The earnings season is expected to continue this trend of double-digit growth, with broad-based strength across multiple sectors.