European Earnings Disaster: Only 3 Percent Of Large Caps Beating

Europe’s third quarter earnings witness modestly positive results with 35% of companies beating estimates, while 28% missed estimates. Matthew Garman and team at Morgan Stanley (NYSE:MS) in their recent European Equity Strategy report tracked 145 companies and point out over half the companies reporting to date have missed their top-line expectations. Financials beat estimates Morgan Stanley (NYSE:MS) analysts point out that financials posted the most earning beats, followed by energy. However, utilities, telcos and consumer discretionary witnessed the weakest earnings. The following table depicts the earnings posted by various industries: Interestingly, Goldman Sachs observed S&P 500 third quarter earnings posted positive…