UBS: Earnings better than feared

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Via UBS:

More beats than misses and guidance was also better than expected

Reporting season is now over. Reporting season was better than we expected, with a number of stocks showing a surprising resilience to COVID-19. Resilience in revenues and/or margins was seen in stocks exposed to Consumer Staples, Building Materials, Discretionary Retail, Gaming, General Industrials and Insurance. Market reactions to results, particularly guidance beats (Figure 9), were very positive; the median stock rose 0.7% after reporting, the best reaction to results in at least five years (Figure 1).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.