|2023/05/24 / Erste Group Research|
Mostly positive EPS surprises in 1Q
Rating Changes: ICICI Bank, Meta Platforms, WW Grainger, Deere & Co, Factset Research Systems , Morgan Stanley.
In the US, 95% of the companies in the S&P 500 released their 1Q results. 78% of the companies reported a positive earnings surprise. Thus, the earnings decline for the S&P 500 was only -2.2% y/y, significantly better than expected at the beginning of the quarter. (-6,6%). In Europe, 84% of Stoxx 600 companies reported 1Q results. Earnings were higher than expected for 66% of the companies. Overall, profits rose by +9.5% y/y. The financials, technology, and utilities sectors in particular contributed to the growth with profit increases of around 50% y/y.
It is apparent that with the expected end of interest rate hikes in the USA, investors are again significantly increasing the weighting of growth stocks (technology/healthcare/industry). We expect this trend to continue, especially as energy and commodity prices (including oil, gas, copper) fell, in some cases significantly, in Q2 and no trend reversal is apparent.
Meta Platforms: Costs reduced and significant sales and earnings growth expected in 2023
SAP: Cloud revenue growth remains very strong in 2023
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|Author||Erste Group Research|
|Product name||Recommendation List|
|Topic in focus||Equities|
|Economy in focus||Eurozone, Germany, Japan, Switzerland, United Kingdom, United States|
|Currency in focus||British Pound, Euro, Swiss Franc, US Dollar|
|Sector in focus||Automobiles & Parts, Banks, Basic Resources, Chemicals, Construction & Material, Financial Services, Food & Beverage, Health Care, Industrial Goods & Services, Insurance, Media, Oil & Gas, Personal & Household Goods, Retail, Technology, Telecommunications, Travel & Leisure, Utilities|
|Name||ISIN||# Erste Group products|
|Advanced Micro Devices||US0079031078||0|
|Amadeus IT Group||ES0109067019||0|
|Anheuser Busch Inbev||BE0974293251||0|
|Bank of America||US0605051046||0|
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