Data Source: Thomson Reuters
While it’s still early in Q2 European Stoxx 600 reporting, estimates came down in the past few weeks. In contrast to 7/10/19, Stoxx 600 earnings are now expected to increase .6% year on year relative to .8% expectations on 7/10/19. However, revenue expectations moved up meaningfully from +1.0% on 7/10/19 to 2.7% this week.
While the estimates have come down, they are still positive year on year – relative to the US – where Q2 estimates are still negative. This should help the Fed and possibly ECB to act with accommodation in the coming weeks and months – until the back half 2019 and first half 2020 growth estimates start to materialize.
The beat rates on both the top and bottom lines are above average at 58% and 54.8% respectively – relative to the average of 55% and 50% respectively.
