The European Reporting Season

The European Reporting Season

The start of the European reporting season also seems to confirm that the earnings bottom is now behind us, as already highlighted by the American data. About 1/4 of European companies have already reported, with numbers that have allowed the growth expectations of the Eurostoxx 600 to recover from the lows of a few months ago:



The Q42020 has in fact started in Europe with decreases of about 16,5%, compared to the expectations of -27% at the end of 2020, an improvement of about 10% driven by company surprises. In fact, almost 70% of the companies beat the estimates. The best sectors of the European markets were the most cyclical: cyclical Materials and Consumer, which showed growth of + 63.6% and + 31.7% respectively.



For 2021 a strong recovery is expected in the sectors that have been most negatively affected by the Covid-19 pandemic, such as the most cyclical sectors. Among the European ones it is very interesting to see how the utility sector is the only asset class with positive and stable growth over time.



For 2021, expectations are for +41%, an improvement compared to the end of 2020:



Considering the very positive start of the reporting season and the coordinated economic recovery, we continue to be positive on the cyclical recovery of earnings also in Europe.

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