Even the world’s largest financial market regulator, the U.S. Securities and Exchange Commissions, doesn’t care about first-quarter corporate earnings, so why should Europe?
Europe begins reporting results next week with the likes of Credit Suisse, Apple component supplier STMicroelectronics, Sanofi and Volvo all due to report and focus is on the second-half and 2021 outlook.
European companies are expected to report a 22% earnings decline in the first quarter and 34% drop in the second, Refinitiv data show. That would be the sharpest decline in annual profits since at least the global financial crisis.
With the STOXX index down 25% year-to-date, much of that’s already priced in. Those seeking detailed commentary on where companies stand might be disappointed. So far, ASML and Volkswagen have failed to provide outlooks. Given uncertainty surrounding COVID-19 and lockdowns, more companies may follow suit.