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12 Nov 2014
Growth stabilizing in the US - BAML
FXStreet (Barcelona) - Team BAML observes that the recent macro data point to a stabilizing or improving global growth in the US.
Key Quotes
"With over 90% of S&P 500 earnings having been reported, 3Q EPS is currently tracking US$29.97, which is 3% higher than consensus expectations going into earnings season, and in-line with our long-standing forecast of US$30.00. All sectors except Telecom have seen aggregate earnings exceed expectations."
"Sales look to be in-line, with the biggest beats from Health Care and Financials and the biggest misses from Energy and Staples. Earnings growth is tracking 7% YoY (8% ex. Financials and Energy) and sales growth is tracking 4% YoY (5% ex. Financials and Energy), consistent with healthy economic growth. The remainder of earnings will be spread out over the rest of November/early December, with chiefly the Retailers plus some Tech and Industrials companies left to report."
"Almost two-thirds of companies with significant (>30%) overseas sales exposure have beaten analysts' earnings expectations, while just 43% of purely domestic stocks have beaten on EPS. Expectations for multinationals had been slashed amid a stronger dollar, weaker oil prices, and concerns about global growth, but we think the worst estimate cuts may be behind us. Recent macro data point to stabilizing or improving global growth, and management guidance trends remain solid."
Key Quotes
"With over 90% of S&P 500 earnings having been reported, 3Q EPS is currently tracking US$29.97, which is 3% higher than consensus expectations going into earnings season, and in-line with our long-standing forecast of US$30.00. All sectors except Telecom have seen aggregate earnings exceed expectations."
"Sales look to be in-line, with the biggest beats from Health Care and Financials and the biggest misses from Energy and Staples. Earnings growth is tracking 7% YoY (8% ex. Financials and Energy) and sales growth is tracking 4% YoY (5% ex. Financials and Energy), consistent with healthy economic growth. The remainder of earnings will be spread out over the rest of November/early December, with chiefly the Retailers plus some Tech and Industrials companies left to report."
"Almost two-thirds of companies with significant (>30%) overseas sales exposure have beaten analysts' earnings expectations, while just 43% of purely domestic stocks have beaten on EPS. Expectations for multinationals had been slashed amid a stronger dollar, weaker oil prices, and concerns about global growth, but we think the worst estimate cuts may be behind us. Recent macro data point to stabilizing or improving global growth, and management guidance trends remain solid."