Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European Q4 earnings season: The story so far

Published 01/02/2021, 10:20
Updated 01/02/2021, 10:29
© Reuters.

© Reuters.

By Samuel Indyk

Investing.com – European Q4 earnings have got off to a strong start with 45 of the largest companies reporting equating to approximately 14% of the market cap of the STOXX 600.

“So far, earnings for Q4 have surprised 13% to the upside (equal-weighted), which is the highest positive surprise since the global financial crisis,” analysts at Goldman Sachs wrote in a research note. “The surprise is slightly larger than the remarkably good result in Q3. More than half the companies reported a positive surprise,” they added.

A similar picture has been seen with revenue as sales have so far surprised 3% to the upside. Nevertheless, consensus earnings expectations for STOXX Europe 600 companies are still 15% lower than the same period last year with FY earnings expected down 30% YoY.

SECTORS

Goldman Sachs (NYSE:GS) note that banks and financial services companies have reported some of the strongest early results. Banks that have reported so far include UBS Group AG (NYSE:UBS), Bankinter (MC:BKT), Banco Bilbao Vizcaya Argentaria SA (MC:BBVA), Caixabank SA (MC:CABK) and Skandinaviska Enskilda Banken AB A (ST:SEBa). Of those, UBS beat expectations by 50% and announced plans to resume share repurchases and SEB reported an 11% beat.

The all-important technology sector has also got off to a good start. ASML Holding NV (AS:ASML) reported on the 20th January, beating consensus estimates. German tech company SAP SE (DE:SAPG) have pre-released their figures for Q4 which beat expectations but had a cautious outlook.

Another important sector is the healthcare sector. Shares in the sector underperformed during 2020 despite the Covid-19 pandemic as companies lost revenue in other areas and company focus turned to the coronavirus. So far, performance has been mostly in-line with expectations. Koninklijke Philips NV (AS:PHG) posted a beat, boosted by their connected care segment which was Covid-19 related.

LOOKING FORWARD

This week a number of companies are scheduled to report earnings in the UK and Europe. From the UK, companies reporting include BP on Tuesday, GlaxoSmithKline and Vodafone on Wednesday, and Shell and BT on Thursday.

Earnings this week from Europe include Ferrari on Tuesday, Siemens and Santander (MC:SAN) on Wednesday, Infineon and Nokia on Thursday and Sanofi, BNP Paribas and Intesa Sanpaolo on Friday.  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.