Only 2 European stocks have positively surprised the markets every quarter for the last five quarters.
Only 2 European stocks have positively surprised the markets every quarter for the last five quarters.
The banking sector in Europe has been a net beneficiary of the higher interest rate environment. Many banking stocks, such as France’s Société Générale, Spain’s Banco de Sabadell, Germany’s Commerzbank, and Sweden’s Swedbank, have beaten earnings per share estimates over the past five quarters.
However, the shares of these banks did not rise steadily following the quarterly results. This is due to factors including a negative outlook for future impairments, slowed loan growth, rising layoff costs, and more.
By contrast, shares of German lender Deutsche Bank jumped to a more than six-year high last week after it reported a 10% rise in first-quarter profit and beat expectations. However, the bank had missed expectations for the quarter ending June 2023 last year.
Italian bank UniCredit and Portugal’s Banco Comercial Portugues are the only stocks in the Stoxx Europe 600 index that beat analysts’ earnings per share (EPS) estimates every quarter over the period and have seen the value of their shares increase in the following session.
UniCredit was notable for several significant increases in its share price following its quarterly earnings releases. Most recently, on February 5, the company beat earnings estimates by 6.1% and shares rallied more than 8% in the following session. Four quarters ago, the stock rose 12.8% in a single session after the earnings release.
In February, the Milan-based bank said it planned to distribute 8.6 billion euros ($9.2 billion at the time) to investors following higher-than-expected profits. It had reported a fourth-quarter profit of 1.9 billion euros - nearly three times analysts’ expectations.
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Original article published on Money.it Italy 2024-05-31 06:44:00. Original title: Tra i titoli che crescono di più in Europa, c’è anche una banca italiana
