Deutsche Bank Summarizes Europe's Horrible Season For Earnings

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Photo: Peretz Partensky on Flickr

Deutsche Bank’s second quarter reporting review for Europe serves as the newest sign that Europe’s economy is on the ropes.It also suggests that anyone who thinks the eurozone can grow out of this mess is either deluded or lying to your face, calling the current reporting period “the weakest in recent times.”

Since 2005, an average of 58% of companies generally beat DB’s consensus earnings and 60% beat earnings estimates. This year only 53% and 50% of companies surveyed are outperforming these estimates, respectively.

Here’s what else the report had to say:

– Insurance companies had a standout quarter, with 75% topping both earnings estimates. Companies specializing in oil and gas, utilities, and financial services also performed significantly better than expected.

– Chemicals and basic resources took a beating, with only 30-40% of companies in each sector exceeding expectations in each category.

– We should all start feeling bad for Switzerland. Only 27% of companies beat estimates for earnings per share, and only 42% outperformed on revenues. This could be a result of the wildly appreciating franc.

– U.K. companies are outperforming the rest of Europe, with 71% beating EPS and 61% beating revenues. Even so, they’re not doing as well as U.S. companies (76% and 71%, respectively).

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