EC Previewing Big Tech Earnings

The chart below takes a big-picture view of the quarters, showing Q1 earnings and revenue growth highlighted and shown in the context of what was actually achieved in the last few quarters and what is expected in the coming periods.

The chart below shows quarterly earnings totals or quarterly aggregate net income, instead of year-over-year growth rates. This gives us a better appreciation of the pandemic’s earnings impact and the resulting easy comparisons that are helping the growth rate in Q1 (and even ‘hugely’ in Q2).

The chart below presents the big-picture view on an annual basis. As you can see below, 2021 earnings and revenues are expected to be up +27.5% and +8.6%, respectively, which follows the Covid-driven decline of -13.1% in 2020.

On an index ‘EPS’ basis, the 2021 expectation works out to $173.45, up from $136.10 per ‘Index share’ in 2020. These full-year estimates have been going up as well, as the chart below shows.

We envision this favorable revisions trend to accelerate over the next few months as the vaccination effort reaches a critical mass and greater ‘normalcy’ returns to life.

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