“Nordic Q4 reporting season continues. We keep trimming our estimates as companies results are falling short of expectations. Only some 20% been beating the market.” (SEB)
During the last three months, Swedish profits have been revised lower bý 9% and 6 % for 2013 & 2014. Net sales have only seen minor revisions.
SEB has already concluded that the surge in Nordic Equity markets last year coincided with “one of the longest periods of earnings downgrade we have recorded.” Despite the negative revision trend SEB is trying to be constructive on equities.
“On March 19th 2013 we hiked our 12-months OMX30 target to 1320 (from 1200). On 23rd Dec 2013 the target was reached. On 3rd December our 12-months target for OMX30 was hiked to 1400 (from 1320). As explained in our latest Nordic Equity Strategy report, we argued that supportive flows and lack of competitive alternatives, rather than valuation, would lift stocks further.” (SEB)
SEB expect a rise in profit growth for 2014 and 2015.
2013 began with hopes and expectations of about 6% higher profits. The year ended with falling profits, down about minus 5%. At the same time the stock market exploded higher with roughly 23%.