Positive Earnings So Far

| Multi-actifs

Q4 earnings results highlight the positive effects of the current cyclical rebound. Only 30% of companies in the S&P 500 index and 10% in the Eurostoxx 600 have published their results so far but the figures show a high level of surprise for both profits and sales. On average, for US companies, profits have grown by 4% on a year-on-year basis while sales show yearly growth of 1%. For European companies, profit and sales growth amount to 9% and -4%, respectively.

However, we note that the market reaction to “earnings beats” has been negatively asymmetric for US corporates, suggesting that expectations were too high.

 

However, we note that the market reaction to “earnings beats” has been negatively asymmetric for US corporates, suggesting that expectations were too high.
Source: Bloomberg, Unigestion. Data as at 29 January 2021.


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