PARIS, France – A recent report by Bernstein suggests that European earnings are currently at record-high levels and are expected to remain strong. The investment firm’s analysis indicates that European forward earnings are currently 14% above their long-run trend and 30% higher than pre-Covid levels at the market level.
Bernstein’s report also highlights the industries in Europe with the strongest earnings trends, including banks, semiconductors, energy, autos, and capital goods. While near-term tactical earnings downgrades are expected, the report suggests that there is not a significant risk of earnings returning to long-run trend levels in these industries.
In other financial news, U.S. stock futures opened little changed on Tuesday, with the Dow Jones Industrial Average futures ticking down 19 points and futures tied to the S&P 500 trading near the flatline. Meanwhile, Nasdaq 100 futures gained 0.08%.
Additionally, several companies made significant moves after hours, with Robinhood Markets seeing a 9.5% jump in shares after posting a surprise earnings and revenue beat. Similarly, Lyft’s shares soared 18.5% in extended trading after reporting strong fourth-quarter results and providing better-than-expected guidance.
These developments in the European and U.S. markets come amidst a backdrop of continued economic recovery and changing investor sentiment across the globe. As companies continue to navigate the post-pandemic landscape, these trends in earnings and stock movements provide valuable insight into the financial health and resilience of various industries.