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Asian Companies Seeing Big Earnings Upgrade

#Asian #companies #earnings

Asian firms have received the biggest upgrade to their forward 12-month earnings estimates in 6 months, bolstered by a surge in regional manufacturing and exports as a recovery in global demand continues.

Analysts lifted their forecasts for Asian companies’ forward 12-month earnings by 3.9% in May, the highest since November last yr, according to the data.

“Earnings recovery remains a dominant theme despite risks of rolling COVID waves ahead aided by strengthening of vaccine rollouts in more developed parts of Asia,” Nomura said in a report at the end of last month.

The recovery is being driven by sectors where structural themes underpinned earnings such as semiconductors, electric vehicles, internet/e-commerce and gaming, Nomura said.

Asian companies posted higher-than-expected profits in Q-1, prompting analysts to revise their forecasts higher for the yr.

Goldman Sachs said regional firms’ Q-1 earnings grew 70% last yr, while their median earnings surprise was the highest in 10 yrs at 12%.

Taiwanese companies saw the biggest earnings upgrades of 5.9% in the past month, while Indian firms’ were lifted by 3.5% after a cut in April.

“India might see selected pockets of strength despite concerns around surging COVID-19 cases as manufacturing activity remained stable, while sectors such as information technology reported strong earnings results,” said Goldman Sachs in a report last month.

SKorea, Vietnam, Singapore, and Australia, all saw earnings upgrades of more than 2% in the last month, while the Philippines and China received small downgrades.

Have a healthy day, Keep the Faith!

Paul Ebeling
Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.   

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