Asia’s Stellar Profit Recovery May Be Showing Signs of Stalling
- Forward earnings estimates little changed from end of February
- Earnings quality may increasingly drive share prices: BNP
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The rapid rebound in earnings estimates that helped fuel Asia’s equity rally may be showing early signs of leveling out.
As the latest results season approaches its end, about 36% of reporting MSCI Asia Pacific Index members have missed earnings estimates, a level higher than the previous quarter’s 30%, according to data compiled by Bloomberg. Twelve-month forward earnings-per-share estimates have climbed about 22% from their June low but are little changed from the end of February.