More data on earnings surprises, this time for companies in Asia (excluding Japan). Although Nomura’s definition of surprise sets the bar higher—10% above or below consensus expectations—than in Monday’s post about European firms, the results are broadly similar.
In their latest quarterly results, banks beat earnings expectations more often than the average, with insurance firms lagging behind. But unlike in Europe, where a larger share of insurers beat expectations than missed them, insurers in Asia missed analysts’ forecasts more often than not. This was also true for Asian companies as a whole, with food retailers, software companies and professional services firms missing the mark by the widest margins.