Given the sharp decline in the second quarter of 2020 as the Covid-19 pandemic took hold, second-quarter earnings across the European blue chip index this year are still set to remain 2% below their pre-pandemic peak.
"This would bring the total increase from last year's trough to 50%, broadly in line with the EPS rebound after the global financial crisis." "The 12-month forward EPS for resources has been revised up by almost 60% over the past six months, the strongest earnings momentum on record, with energy's relative EPS momentum close to a 25-year high, at 45%," they said.
The latter trend has driven the energy sector's price-to-earnings ratio to an all-time low, BofA highlighted, while mining is at its lowest since 2008.expects the second quarter to bring more capital expenditure announcements, share buybacks and M&A.
Europe has earnings?
Earnings season? Arable crops?