Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

3 posts found for October 2012

‘Banks: Europe’s highest growth sector?’

As we noted in a blog earlier this week European analysts currently see the Banks sector as delivering the strongest growth in corporate earnings in 2013. This follows a fall in bank profits of nearly 19% this year. Banks are expected to deliver 28% profit growth in 2013 compared with the forecast of 12% growth for market earnings1. Given that this time last year the same analysts were forecasting 21% growth in bank profits for 2012 (which has since been proven to be 39% too high) it would be easy…

‘EADS/BAE - an accidental victory for shareholders’

EADS and BAE management declared war on their shareholders with their proposed merger. With only a few shareholders having fired warning shots, Enders and  King today surrendered in no man’s land having had no battle-plan to negotiate  the minefield of national security interests that lay between them and their quarry. Today’s decision to terminate merger talks between EADS and BAE is a triumph for common sense and shareholder value. Having sunk almost €30bn into new Airbus plane projects that are…

‘A Quiz on European Corporate profits and the accuracy of analyst’s forecasts’

1.) This time last year, which sector did analysts forecast to have the highest earnings growth in 2012? 2.) Which sector has seen the biggest downgrades to growth expectations over the last year? 3.) In which sector are analysts forecasting the fastest growth in 2013? Answer: The Answer to all three questions is BANKS As we can see from the table below, this time last year analysts were forecasting 22% earnings growth for the European banking sector in 2012 and 11% for the  market as a whole.…