EM Estimates Revisions Improved, Volatile by Jennifer Thomson, Gavekal Capital
Developed market sales and earnings estimates revisions remained relatively stable throughout the most recent market turmoil, with about half reporting positive changes over all 6-, 3-. and 1-month time horizons:
Even estimates in the Energy sector have gradually improved (in spite of still being negative):
For their part, emerging markets’ estimates revisions have been much more volatile, with changes in sales estimates jumping from less than 20% positive six months ago to nearly 50% positive over the last month (led by cyclicals in the Consumer Discretionary and Information Technology sectors):
In spite of the more positive outlook with respect to revisions, the estimates themselves remain in (less) negative territory overall:
