Data Source: Thomson Reuters
Estimates for European Q1 earnings have dropped from -1.6% to -3.2% in the past week. This puts Europe’s estimates in-line with the U.S. – which is at -3.9% for Q1 as of Friday.
While this is a big drop, expectations and sentiment remain very low for the region – so with a normal beat rate of ~3% European earnings could come in ~flat year on year. This would exceed the current excessive pessimism in sentiment for the region.
Revenues will come in positive as a function of the weak Euro. We’ll know more as the data comes in over the next few weeks.
