One way we keep up with global fundamental corporate performance is by tracking sales and earnings estimates for the MSCI World index. The only tweak we make to the data for over 1,600 companies in developed countries is to equal weight sales and earnings. In this way, all companies, regardless of size, are counted the same. We can then look at the breadth of earnings revisions over different time periods. In the tables below, we focus on the percent of companies in each regional sector with improving sales and earnings estimates.
Over the last month, 49% of the companies in the MSCI Asia-Pacific index experienced positive earnings revisions, while 57% of these companies saw positive top-line revisions too. This compares with only 30% of companies in Europe and 42% of companies in North America that have experienced positive earnings revisions over the past month. Only 27% of European companies saw positive top-line revisions, while 44% of North American companies saw revenue estimates rise.
Sales & Earnings Revision Breadth for Asia
Sales & Earnings Revision Breadth for Europe
Sales & Earnings Revision Breadth for North America