S&P 500 companies have been beating analyst estimates for fourth-quarter earnings at a blistering pace and coming days will put that trend to the test.
So far, 83.3 of results have posted profits above expectations, according to Refinitiv I/B/E/S data — far above the historic 65% rate. S&P 500 companies are now expected to post an overall 1.6% increase in fourth-quarter earnings, compared with a double-digit fall predicted on Jan 1.
Results look even more rosy given the dismal picture in Europe where fourth-quarter earnings are seen dropping 23.9%.
Upcoming U.S. reports include Cisco Systems, Coca-Cola and Walt Disney. In Europe, banks UniCredit, Commerzbank and Societe Generale, oil major Total and travel firm Tui will publish numbers. The results could cement the transatlantic divergence.
– U.S. companies set to post profit growth for Q4, which would defy forecasts