And they’re off! The starting gate is open and European companies are racing to report quarterly earnings. A StarMine analysis reveals ten candidates that seem ready to prance into the winners’ circle — or pull up short and deliver a negative Earnings Surprise.
Earnings Surprise
As we do twice a year, we selected ten companies that we expect to fall into one of two camps: an earnings beat or an earnings miss based on SmartEstimate and Predicted Surprise data. Our selections usually demonstrate an accuracy rate of about 80%, giving investors an edge ahead of earnings announcements.
Check the list
When the earnings season wraps up, we’ll report back on how the companies fared – and take a look at what they say about the coming quarters.
Here is a list of European companies that the StarMine research team picked to deliver earnings surprises, along with some analyst views:
TOP POSITIVE SURPRISE FORECASTS:
1. Paragon Group of Companies (PARA.L) could benefit from an entry into the lucrative car financing market.
2. Actelion (ATLN.VX) sees strong sales in its new lung disease drug and increasing margins.
3. Infineon Technologies AG (IFXGn.DE) sees benefits from increased computing power in automobiles and strong auto demand.
4. UPM-Kymmene OYJ (UPM1V.HE) is undertaking cost saving measures as well as production increasing measures as operating efficiency has picked up.
5. Orion Corp. (ORNBV.HE) is likely to see an earnings boost from a deal with Bayer for a prostate cancer drug.
TOP NEGATIVE SURPRISE FORECASTS:
1. Remy Cointreau (RCOP.PA) suffers as recent pro-austerity policies are having a chilling impact on earnings.
2. Fred Olsen Energy ASA (FOE.OL) is foundering as the global price for leasing rigs seems to be sinking due to weak demand.
3. Oriflame Cosmetics S.A. (ORIsdb.ST) faces chaos in its key Eastern European markets.
4. ABB Ltd. (ABBN.VX) is fighting declining operating efficiency and using its assets less efficiently.
5. Randgold Resources (RSS.L) is suffering from operating woes as gold prices remain considerably below their highs two years ago.
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