Strong Earnings Results
Source: Bloomberg, JPM, Unigestion, as of 3 November 2021. Percentage of Firms Beating Estimates.
The bulk of firms in the US and Europe have now reported their results for Q3, and they have been fairly strong: based on the 73% of firms in the S&P 500 that have reported so far, 83% are beating their Q3 earnings estimates and 67% are beating their sales estimates. For the 62% of Stoxx 600 firms reporting, 59% are beating their earnings consensus estimates and 63% are beating on sales. In year-over-year terms, sales are up 18.5% and earnings 39.4% for reporting firms in the S&P 500, while Stoxx 600 firms are seeing 14.3% sales growth and 44.3% earnings growth.
The strong results are also broad-based, at least in the US: the Utilities sector in the S&P 500 has been the laggard in surprises thus far, and 60% of these firms are still beating their earnings estimates. At the other end, over 90% of Technology firms have beat on earnings. In Europe, there is greater variation across sectors, with just 38% of Consumer Discretionary firms beating their earnings estimates while 81% of Financials are beating theirs.
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