Among S&P 500 companies that have reported so far, EPS growth is running at 6% y/y, surprising positively by 4%, JPMorgan strategists say in emailed note.
- So far, in the U.S. about 40% of companies have reported, while in Europe only 16% and in Japan 21% of companies have released 4Q results, JPMorgan strategists Mislav Matejka, Prabhav Bhadani and Nitya Saldanha say
- In the U.S., most sectors are seeing positive earnings surprises, with tech earnings leading in strength
- In Europe, 64% of Stoxx 600 companies beat EPS estimates, the highest level since 2017; EPS growth is negative 3% y/y, but 2% ahead of expectations; among sectors, commodity and industrials are weak while tech, discretionary, real estate and utilities are delivering better results
- In Japan, 53% of Topix companies beat estimates, with overall growth at negative 4% y/y
- European companies that are beating earnings are being rewarded by investors, while misses aren't being proportionately penalized -- in contrast with what was seen in previous quarters and experienced in the U.S. so far