At half-time for the Q2 earnings season, it’s showering “beats” both sides of the Atlantic. Analysts, flying blind as companies withdrew guidance at the height of the pandemic, were perhaps too pessimistic.
Here’s the scorecard on 250-plus companies that have so far released numbers in each region: 80% of S&P500 companies beat estimates, versus 65% of European firms, Refinitiv IBES data shows.
While industrial names such as General Motors and Caterpillar delivered big positive surprises, the season also cemented U.S. tech’s hegemony; Amazon reported its biggest profit ever, Facebook smashed estimates and Apple iPhone sales surpassed expectations.
But while beats come in left, right and centre, it’s not been enough to move the needle on stock markets, which had already written off second-quarter results due to lockdown blues.