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Hurdling Overseas Earnings

Overseas earnings were even better than expected during the first quarter (Q1)

of 2017. Global equity analysts were looking for strong earnings growth from overseas

companies after years of flat to declining earnings; for the most part, those markets

delivered. Stock markets themselves responded, with international markets generally

outperforming the S&P 500 Index. Frequently after earnings are released, analysts

may reduce future growth expectations, often based on conservative comments

from companies as they manage expectations. However, earnings expectations only

decreased modestly during this period, and actually increased further for some regions.

It is great to see continued optimism on corporate fundamentals, but it could prove

challenging for companies to outpace expectations again.

 

 

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