Nvidia's first-quarter profit growth is expected to be very good. But not the greatest in the S&P 500.
Two S&P 500 companies, including toy maker Hasbro and alternative energy firm First Solar, are seen putting up first-quarter adjusted profit growth of more than 405%, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's an important number as it exceeds the expected profit growth rate from AI wonder Nvidia.
In fact, eight S&P 500 companies are predicted to put up more than 300% profit growth in the first quarter.
And that's miles ahead of the profit growth seen coming from the S&P 500 at large. "Based on the average improvement in the earnings growth rate during the earnings season, the index will likely report year-over-year growth in earnings of more than 7% for the first quarter," said John Butters of FactSet.
Standing Out In The First Quarter
First-quarter earnings season is seen kicking off during this week. And analysts are hoping the period is better than expected.
Analysts are the most bullish on utilities' profit. They're calling for the S&P 500 sector to boost profit by 23% during the first quarter. That's higher than any of the other 11 S&P 500 sectors.
But technology is a close second. Analysts think the sector's profit will rise more than 20% during the quarter. And both First Solar and Nvidia are big contributors to that.
Nvidia Isn't The Only Game In Town
There's no question that Nvidia's profit growth is impressive. But it's not even expected to be the fastest-growing tech firm. That title goes to First Solar.
Analysts think First Solar's bottom line will soar 406.2% during the quarter. Much of that is due to cost-cutting an efficiency as revenue at the company is only seen rising roughly 35% during the quarter. The stock, though, is only up 6% year-to-date. That pales next to Nvidia stock's 77% rise. Investors are fearful many green energy subsidies might be at risk during an election year.
It's Not Just Fun And Games
Most surprisingly, though, is the fact Hasbro, maker of the Super Soaker, is likely to put up faster profit growth than Nvidia. Analysts think the company will make 31 cents a share in the first quarter. That's up 2,990% from the same point last year.
But it's another case of cost cutting. Hasbro's revenue is seen falling by nearly 26% in the quarter. That's not ideal. But still, being able to say your profit is outgrowing Nvidia is something to take note of.
Biggest S&P 500 Profit Growers
In the first quarter of 2024
| Company | Ticker | Sector | First-quarter 2024 EPS gr (estimate) |
|---|---|---|---|
| Hasbro | Consumer Discretionary | 2,990.2% | |
| First Solar | Information Technology | 406.2% | |
| Nvidia | Information Technology | 405.8% | |
| Progressive | Financials | 384.7% | |
| Qorvo | Information Technology | 368.3% | |
| Wynn Resorts | Consumer Discretionary | 354.1% | |
| Constellation Energy | Utilities | 301.3% | |
| Paramount Global | Communication Services | 300.9% |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz
