JPMorgan-Equity Strategy Q4 Earnings Season Tracker-106555031

JPMORGANGlobalMarketsStrategy16February2024EquityStrategyQ4EarningsSeasonTracker•WeareenteringthefinalstagesofthereportingseasonintheUS,withnearlyHeadofGlobalEquityStrategy75%ofcompanieshavingreported.InEurope,wearehalfwaythrough,whereMislavMatejka,CFAAC46%havereleasedQ4earnings.EPSgrowthinEuropecontinuestounderwhelmvstheUS,forthethirdquarterinarow-seeFig13,andUSvs(44-20)7134-9741Europesalesbeatskeeptrendinghigher-seeFig14.Thisiscoincidingwithmislav.matejka@jpmorgan.comthestrongoutperformanceofUSvsEuropeanequitiessincemidlastyear.TheJ.P.MorganSecuritiesplcEPSsurprisefactorisstronglypositiveintheUS;consequently,S&P500Q4blendedEPShasinflectedhigher-seeFig3.Incontrast,earningsinEuropePrabhavBhadani,CFAaresurprisingtothedownside.ThisissupportiveofourpreferenceforUSoverEuropeanequities,whichweinitiatedinMay‘23.(44-20)7742-4404prabhav.bhadani@jpmorgan.com•US:78%ofS&P500companiesthathavereportedbeatEPSestimates.EPSJ.P.MorganSecuritiesplcgrowthforthesecompaniesisat+5%y/y,surprisingpositivelyby8%.NityaSaldanha,CFACrucially,thebulkofearningsgrowthcanbeattributedtoCommunicationServices,TechandDiscretionary-seeFig1.Ifoneweretoexcludethe(4420)77429986Magnificent7stocks’Q4earningsresults,EPSgrowthfortheUSisat-4%y/y.nitya.saldanha@jpmchase.comOntheotherside,CommoditysectorsandHealthcareareweakerthisquarter.J.P.MorganSec...