- 43% of the reporting market cap results are due over two weeks "In the US, 55% of companies reporting have beaten estimates so far. Consensus now expects 32.6% earnings growth in Europe for 2010 (closing in on our 38% forecast). The rise in expectations has all been in margins, while sales assumptions have remained unchanged."
- 2011 Revisions stalling, we remain more positive than consensus "2010 earnings revisions remained positive ytd, but revisions for 2011 have started to stall reflecting increased macro concerns and prompting a shift in focus in 2Q on outlook statements and regional trends. However, we expect growth of 28% in 2011, well above consensus (18%)."
- Equities already discount a deterioration of earnings sentiment "The market has moved with earnings revisions, but we see disconnects at the sector level; Basic Resources enjoyed the strongest upward revisions ytd but underperformed by 5%. Our BRICs and Stable Growers baskets (GSSTBRIC and GSSTGRTH) should provide strong earnings resilience."
GoldmanSachs Europe Portfolio Strategy 20100723
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