Q3 earnings season provides reassuring results.

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.

Highlights:
  • 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.
  •  
Download the full publication below.
Q3 EARNINGS SEASON PROVIDES REASSURING RESULTS.

RELATED INSIGHTS

WEBINAR REPLAY - Credit market: the bridge over troubled water?
Webinar with Paolo Scaroni, Deputy Chairman of Rothschild & Co, Chairman of Giuliani, Chairman of AC Milan and former CEO at Eni, and Anna Maria Reforgiato Recupero, Head of Strategic Investors Group at Generali Investments Partners
Market Compass May 2020
Edited by the Macro & Market Research Team. The team of 13 analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.
The team translates macro and quant views into investment ideas that feed into the investment process.
ECB: Additional liquidity and credit support measures while speculations about HY purchases were kept alive
At today’s policy meeting the ECB embarked on additional credit support measures. It set up a new so called pandemic emergency longer-term refinancing operations (PELTROs) program. It consists of seven additional refinancing operations starting in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures.