Gavekal Capital: Breadth Of Sales & Earnings Revisions Best in Asia

Monday, February 10, 2014

Breadth Of Sales & Earnings Revisions Best in Asia

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

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
Blogs are posted by our investment team. Find out more about us at here. Read more about our strategy at www.gavekalcapital.com.

Disclosure

The information presented here is for informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. An investor cannot invest directly in an index. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Gavekal has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Gavekal.
The information listed on this blog is for example purposes only and should not be construed as the investment Advisor's opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by the investment Advisor. Please review the most recent disclosures. For full information including additional policies and full disclosures on the Advisor, please visit our website gavekalcapital.com.