Although still negative, the consensus European earnings per share growth outlook for the first quarter has improved, according to analysts at HSBC in a note on Friday.
The bank notes that mid-way into the first quarter of 2024, results season, they have seen a noticeable jump in EPS beats and surprises compared to the fourth quarter of 2023.
"Nearly 50% of companies in FTSE Europe have reported their Q1 2024 numbers so far (as of 1-May-24). At 56.5%, the beats share has risen from the multi-year low recorded in Q4 2023 (46%)," said HSBC.
"Strong EPS surprise margin, however, is driven by Telecoms, Financials as well as Basic Materials, where the spike in commodity prices seems to have taken the sell-side by surprise."
Overall, even if it is "very slowly," the consensus EPS growth outlook seems to be improving. The bank explains that the 2024 EPS growth estimate has risen from 4.9% during mid-April to 5.1% currently.
The 2024 EPS momentum has also moved slightly above the threshold level of 50%.