Goldman Sachs Previews European Earnings Amid Positive Momentum
Enhanced Macro Momentum Expected in First-Quarter Earnings
In their analysis of first-quarter European earnings, analysts at Goldman Sachs anticipate better macro momentum supporting the upcoming releases. Despite a slight downtrend in European earnings revision during the quarter, the investment bank highlights a positive outlook.
Earnings Driven by Sales Momentum
Goldman Sachs notes that while consensus EPS for 2024 has seen a 3% decrease year-to-date, sales momentum has been on an upward trajectory. The focus remains on top-line growth rather than margin expansion, setting the stage for a positive earnings season.
Cyclical Market Areas to Shine
The bank predicts that cyclical sectors will continue to perform well, contributing to an overall positive surprise in earnings. With a favorable backdrop, companies may exceed expectations and provide upbeat guidance for 2024.
Sector Spotlight: Energy
Goldman Sachs points to the energy sector as a potential source of positive surprises during the earnings season. Companies within this industry could drive overall earnings improvements with their performances.