- Q3 earnings season is almost finished showing decent results which eveen improved since our last October’s update.
- At the index level, around 80% of US companies have beaten analysts’ exppectations for earnings and sales.
- The earnings growth increased in Q3 vs Q2 both in Europe and in the EA
- In the US, the earnings guidance improved and is above norm. The US cappex increased in Q3 vs Q2 but capex intentions remain subdued at a cyclical low.
- After having being cut, Q4 expectations are not so exuberant anymore. Thaat said, 2020 estimates remain too bullish (growth of 10% vs our estimate of 3-to-4%) with risks of further negative revisions going forward.
- The most export-oriented EM countries (Korean, Taiwan) show negative yyearly earnings growth. Indian companies are turning around and have significantly beaten analystts’ expectations.