Auto restoration fuels optimism for Europe's earnings season
Image: Collected
More broadly, Germany's vehicle industry association said on Tuesday it was optimistic for a restoration in the next half of 2021 regardless of the closure of shops and showrooms and a global shortage of semiconductors that has shut assembly lines.
Expectations for European corporations' profits within the last one fourth of 2020 are bettering as the reporting time gets underway, driven by optimism car markers will recover faster than expected from the COVID-19 crisis, according to Refinitiv I/B/E/S data.
Companies listed on the pan-European STOXX 600 benchmark index are expected to see a 24.3% fall in fourth-quarter revenue, an improvement compared to last week's prediction of a 26.2% retreat.
Refinitiv added that from the 14 firms which had previously reported earnings when it compiled the data, 78.6% had exceeded analyst estimates.
Germany's Volkswagen's notably reported on Friday a rebound in prime car sales found in China and more robust deliveries which pushed its operating earnings to 10 billion euros, well above the 4.8 billion euros awaited by analysts.
"We expect Q4 earnings season to deliver many beats over the sector", UBS analysts commented separately in an email, warning however that some of the improvement acquired already been priced found in the stock market.
More broadly, Germany's automobile industry association said about Tuesday it was optimistic for a restoration in the second half of 2021 despite the closure of retailers and showrooms and a worldwide shortage of semiconductors which has shut assembly lines.
Estimates for the initial one fourth also slightly increased compared to last week. Profits have emerged rising 44% versus 43.5% in go on week's data.