🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Goldman Sachs enters European earnings season on a positive note

Published 2024-04-15, 06:20 a/m
© Reuters.
GS
-

In their first-quarter European earnings preview, analysts at Goldman Sachs (NYSE:GS) said in a note that better macro momentum will support earnings releases this quarter.

The investment bank notes that European earnings have been revised down during the first quarter, with consensus EPS for 2024 down 3% year-to-date. However, they have found that sales momentum has trended upwards while margins were revised down.

"We continue to expect earnings to be driven by the top line rather than any margin expansion," said the bank. "We enter the earnings season on a positive note."

"With lower earnings expectations, we think the bar to beat expectations is not too high and that the improvement in the cyclical backdrop should provide room for positive commentary from companies and potentially feed through to upgrades to 2024 guidance," added Goldman.

The bank feels cyclical areas of the market will continue to do well, while overall, they see a broader positive earnings surprise.

When it comes to sectors, Goldman sees a surprise potentially coming from energy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.