Invest
AI and technology assert global impact on 2024 earnings trends
AI and technology have continued their strong influence into 2024, playing a pivotal role in driving positive earnings revisions across global markets, a trend that was also dominant throughout 2023.
AI and technology assert global impact on 2024 earnings trends
AI and technology have continued their strong influence into 2024, playing a pivotal role in driving positive earnings revisions across global markets, a trend that was also dominant throughout 2023.
Without the significant contributions of AI and technology companies, global markets would have experienced negative earnings revisions in the current year. The global communications sector, for instance, saw an upgrade of 3.1% since the start of the year, following a robust 20.5% positive revision in 2023.
In Australia, the February 2024 reporting season brought to light a modest -0.3% decline in earnings expectations for the S&P ASX 300 Index, suggesting a broad market trend that remains somewhat sanguine. Despite this overall downtrend, the technology sector experienced noteworthy earnings upgrades of +5.2% for the next 12 months. This contrasts sharply with trends from the previous year. Other sectors like utilities, industrials, and discretionary also witnessed positive shifts in earnings expectations. However, energy, communications, and materials sectors faced the largest downgrades, highlighting a significant divergence from global trends, especially in the communications sector where AI has not yet significantly impacted large-cap Australian companies.
The reporting season also saw a diverse range of companies in the top 100 of the S&P ASX making significant positive earnings surprises, indicating varied investor reactions and expectations. This diversity underscores the importance of factors beyond earnings, such as forward guidance and comments from management, in influencing market assessments.
A notable trend during the February reporting season was the preferential movement towards high beta, low quality, or "junk" stocks. This aligns with investor tendencies in "risk on" markets, where higher beta stocks, smaller capitalized stocks, and those with lower profitability or higher leverage outperform their counterparts.
Additionally, a short covering rally was observed among the most shorted securities, outperforming the least shorted by +8.8%. This trend also coincided with a reversal of certain "negative" momentum trades from the previous 12 months, further enriching the complexity of this reporting season's market movements.
RELATED ARTICLES
Investment insights
Financial markets focus on shareholder engagement as companies report results
In a week dominated by financial market developments and corporate announcements, companies are increasingly recognising the importance of shareholder engagement in driving market outcomesRead more
Investment insights
Future Generation Australia declares increased dividend amid strong investment performance
Future Generation Australia (ASX: FGX) has announced a significant outperformance against the S&P/ASX All Ordinaries Accumulation Index, reporting a 14.1% increase in its 12-month investment ...Read more
Investment insights
New business landscape shifts as regional areas and company setups gain traction
The latest data from the January 2026 Lawpath New Business Index reveals a dynamic shift in how Australians are choosing to embark on new business ventures. While the overall number of new Australian ...Read more
Investment insights
Good Return secures $1 million investment from Macquarie Group Foundation to boost women-led enterprises
In a significant development for women-led enterprises across the Asia-Pacific region, Good Return has announced a $1 million investment from the Macquarie Group Foundation into its Impact Investment ...Read more
Investment insights
Beyond the trophy: what the REB Awards 2026 reveal about real estate’s next competitive play
Nearly 900 submissions for just over 30 winning slots is more than a celebration—it’s a market signal. In Australia’s roughly $10 trillion residential property market, awards have become a strategic ...Read more
Investment insights
Parents are funding know‑how, not deposits: A case study in Australia’s new first‑home playbook
With listings tight and auctions unforgiving, a quiet shift is underway: parents are increasingly paying for professional buying expertise instead of topping up deposits. This case study unpacks the ...Read more
Investment insights
State Street Markets reveals a shift in investor risk appetite amid economic uncertainties
In a recent revelation by State Street Markets, the latest State Street Institutional Investor Indicators have showcased a notable shift in investor behaviour as uncertainty looms over global ...Read more
Investment insights
UniSuper welcomes back seasoned strategist Mark Himpoo as Senior Portfolio Manager
In a strategic move aimed at bolstering its in-house investment capabilities, UniSuper has announced the return of Mark Himpoo as Senior Portfolio Manager, Equities. Himpoo's return marks a ...Read more
Investment insights
Financial markets focus on shareholder engagement as companies report results
In a week dominated by financial market developments and corporate announcements, companies are increasingly recognising the importance of shareholder engagement in driving market outcomesRead more
Investment insights
Future Generation Australia declares increased dividend amid strong investment performance
Future Generation Australia (ASX: FGX) has announced a significant outperformance against the S&P/ASX All Ordinaries Accumulation Index, reporting a 14.1% increase in its 12-month investment ...Read more
Investment insights
New business landscape shifts as regional areas and company setups gain traction
The latest data from the January 2026 Lawpath New Business Index reveals a dynamic shift in how Australians are choosing to embark on new business ventures. While the overall number of new Australian ...Read more
Investment insights
Good Return secures $1 million investment from Macquarie Group Foundation to boost women-led enterprises
In a significant development for women-led enterprises across the Asia-Pacific region, Good Return has announced a $1 million investment from the Macquarie Group Foundation into its Impact Investment ...Read more
Investment insights
Beyond the trophy: what the REB Awards 2026 reveal about real estate’s next competitive play
Nearly 900 submissions for just over 30 winning slots is more than a celebration—it’s a market signal. In Australia’s roughly $10 trillion residential property market, awards have become a strategic ...Read more
Investment insights
Parents are funding know‑how, not deposits: A case study in Australia’s new first‑home playbook
With listings tight and auctions unforgiving, a quiet shift is underway: parents are increasingly paying for professional buying expertise instead of topping up deposits. This case study unpacks the ...Read more
Investment insights
State Street Markets reveals a shift in investor risk appetite amid economic uncertainties
In a recent revelation by State Street Markets, the latest State Street Institutional Investor Indicators have showcased a notable shift in investor behaviour as uncertainty looms over global ...Read more
Investment insights
UniSuper welcomes back seasoned strategist Mark Himpoo as Senior Portfolio Manager
In a strategic move aimed at bolstering its in-house investment capabilities, UniSuper has announced the return of Mark Himpoo as Senior Portfolio Manager, Equities. Himpoo's return marks a ...Read more
More articles
OUR PLATFORMS AND BRANDS
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Lawyers Weekly 30 Under 30 Awards
- Commerical Finance Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
PODCASTS
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.