June 12 (Reuters) - Analysts continued to cut Asian companies’ 2020 earnings over the past month, however the downgrades were the smallest in three months, as most economies reopened after months-long lockdowns, raising optimism about a profit recovery this year.
Analysts cut the regional firms’ 2020 profit estimates by 3.8% over the past month, the smallest reduction in the last three months, according to Refinitiv data.
Among sectors, utilities and tech firms faced the smallest cut in the earnings forecasts, while the energy and consumer discretionary sectors saw the biggest downgrades over the past month.
China’s 2020 earnings were cut just 1.2%, the smallest in the region.
“We revise up China earnings by 4% and now expect -8% growth this year,” Goldman Sachs said this week.
“Despite the early outbreak of Covid-19 and lockdown, MSCI China 1Q20 earnings only declined 12% (above our expectation of -20%). Both latest manufacturing and service PMIs have risen to expansionary levels, suggesting continued recovery in activities.” the brokerage said.
Reporting by Gaurav Dogra and Patturaja Murugbaoopathy in Bengaluru; Editing by Simon Cameron-Moore