16 April 2011

Morgan Stanley :India Strategy Weekly Earnings Tracker: Earnings Revisions Tick Up

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Summary of changes to consensus earnings estimates:

Over the past 3-months, the 2-year CAGR on MSCI India earnings has been revised down 1ppt while over the past 12- months, it has been raised by 1ppt.

At the sector level, over the past 3M, the 2-year CAGR for 5 out of ten sectors have seen downward revisions with Telecoms seeing the most downward revisions. Industrials, Tech, Healthcare, Consumer Staples and Energy have seen upward growth revisions.

The 1-year and 2-year forward earnings revisions breadth has been negative now for nine and four months in a row, respectively. At the end of the week, earnings revisions breadth for 1-year forward earnings is at -13% vs. the previous week's reading of -17% and the 2-year forward earnings breadth at -12% vs. -16%. This is the third consecutive week when downward revisions breadth has slowed down.

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