According to analysis by CNBC Pro, only two European stocks have delivered positive surprises to the market in each of the past five quarters. UniCredit and Commerzbank were the only two stocks in the Stoxx Europe 600 to beat analysts’ earnings per share (EPS) estimates every quarter during the period, with their shares rising in subsequent sessions. CNBC Pro screened stocks that reported earnings per share data and provided analyst forecasts on FactSet. Several companies did not provide earnings per share data for each quarter and were therefore excluded. UniCredit Bank’s stock price rose sharply on several occasions after the release of its quarterly earnings report, which was an outstanding performance. Most recently, on February 5, the company beat profit estimates by 6.1%, sending its shares up more than 8%. Four quarters ago, the stock rose 12.8% in a single day following earnings. In February, the Milan-based bank said it planned to pay investors 8.6 billion euros ($9.2 billion at the time) due to higher-than-expected profits. The company reported fourth-quarter profit of 1.9 billion euros, nearly three times analysts’ expectations. The European banking sector is a net beneficiary of the high interest rate environment. Many bank stocks, such as Société Générale, Sabadell, Commerzbank and Swedbank, have beaten EPS estimates over the past five quarters. However, the banks’ share prices have not continued to rise along with their profits. This is due to factors such as poor prospects for future loss reductions, slowing loan growth, and rising layoff costs. By contrast, German bank Deutsche Bank last week reported a 10% rise in first-quarter profit and beat estimates, sending its shares soaring to more than six-year highs. However, the bank failed to make CNBC Pro’s list because last year’s results for the quarter ended June 2023 missed expectations.
