BlackRock says European companies are showing ‘surprise resilience’ — and better value than the U.S.
A trader works as a screen displays the trading information for BlackRock on the floor of the New York Stock Exchange (NYSE) in New York City, October 14, 2022.
Brendan McDermid | Reuters
LONDON — European corporate earnings were surprisingly resilient in the fourth quarter of 2022, and the continent’s stock outperformance of the U.S. looks set to continue, according to BlackRock.
With earnings season winding down, the Wall Street giant highlighted in a note Tuesday that European fourth-quarter earnings showed corporate health extended beyond the region’s bedrock sectors of banking and energy.
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“Companies in Europe surprised analysts with their recent earnings performance. Regional stock markets have been on a good run year-to-date but remain at a discount both on a historical basis and versus U.S. peers,” said Helen Jewell, EMEA deputy chief investment officer at BlackRock Fundamental Equities.
Banks and energy enjoyed a bumper fourth-quarter, BlackRock noted that earnings on the pan-European Stoxx 600 index were up by around 8% annually by the end of February, even without the energy sector.
“Europe is the only region globally where 2024 earnings revisions are just back in positive territory,” Jewell said.
“Earnings in the U.K. have also been a positive surprise, even when adjusted for the size of the financial and energy sectors.”
Jewell suggested that the momentum for European banks, which have been buoyed by positive interest rates, is likely to continue, as valuations remain attractive.
The Euro Stoxx Banks index was up almost 24% year-to-date as of Tuesday morning, but Jewell noted that earnings strength means price-to-earnings ratios remain below long-term averages for the sector.
Price-to-earnings ratio determines whether a company is overvalued or undervalued by measuring its current share price relative to its earnings per share.
“We turned favourable on financials in the middle of last year, and believe the sector is capable of further outperformance in 2023 as the European Central Bank remains committed to inflation control and higher rates may put more banks in a position to return cash to shareholders,” Jewell said.
Energy majors in the U.K. and Europe posted record earnings in the fourth quarter on the back of soaring oil and gas prices, but a warmer winter has since led to lower-than-expected physical demand.
Over the medium term, BlackRock still anticipates supply tightness and sees European oil majors continuing to generate massive cash flows.
“These companies trade at a discount to U.S. peers and continue to allocate substantial investment toward renewable forms of energy,” Jewell added.
Despite the resilience thus far, she highlighted the importance of profit margins in 2023, as central banks continue to tighten monetary policy and bring to an end an era of cheap money.
Around 60% of European companies beat fourth-quarter sales expectations, while only around 50% beat on profits, according to MSCI data compiled at the end of February. A similar picture is emerging in the U.K.
“This tallies with what companies across sectors have told us about the growing impact of wage inflation at a time when slowing economic growth has made it harder to pass on costs. We believe that companies with a higher exposure to wage costs may continue to struggle in 2023,” Jewell said.
“We see many opportunities for investors in the region, although it’s important to be selective as profit-margin pressure may bring dispersion across sectors and within industries.”
America’s best-selling electric pickup may be headed for the chopping block. According to sources, Ford is now considering killing off the F-150 Lightning.
Is Ford canceling the F-150 Lightning electric pickup?
After Ford halted production of the electric pickup at its Rouge Electric Vehicle Center in Dearborn, Michigan, earlier this year, it may never return to the assembly line.
Ford announced during its third-quarter earnings that F-150 Lightning production would remain paused after a fire at Novelis’ plant in New York disrupted aluminum supply.
The company said it would focus on gas and hybrid trucks, which are more profitable and require less aluminum.
According to a new report from the Wall Street Journal, Ford’s electric pickup may be as good as dead. Citing sources close to the matter, the WSJ report claims Ford is now considering scrapping the F-150 Lightning altogether.
The move comes after Ford’s electric vehicle business, Model e, lost another $1.4 billion in Q3. Ford’s EV unit has now lost $3.6 billion through the first nine months of 2025.
Around $3 billion of the loss is due to its current EVs, such as the F-150 Lightning and Mustang Mach-E. The other $600 million is for investments in next-gen electric models.
Ford is shifting to smaller, more affordable electric cars with its Universal EV platform. The flexible, low-cost platform is key to unlocking more affordable EVs, which will start at around $30,000.
The first vehicle on the platform is expected to be a midsize electric pickup, similar in size to the Ford Maverick or Ranger. It’s set to roll out sometime in 2027.
CEO Jim Farley said during the company’s Q3 earnings call that $30,000 EVs are “not a distant plan,” adding they are “right around the corner” at Ford.
The F-150 Lightning is still America’s best-selling electric pickup, after Ford sold a record 10,000+ in Q3. Through October, Ford sold 24,577 F-150 Lightnings, slightly less than the 24,670 sold during the same period in 2024.
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In the spirit of SEMA week, Stellantis’ Chinese EV brand Leapmotor is getting some tuner cred from the German performance experts at Irmscher, delivering a 590 hp compact EV that should play well in both the Asian and European street scenes.
European regulators may be slapping heavier tariffs on Chinese EVs in an attempt to slow them down, but automakers like Stellantis-owned Leapmotor finding new ways to build momentum. The latest proof of that is a new, limited-edition Leapmotor i C10 SUV that was developed in and for the Chinese market, but that’s had its edge sharpened up for European roads through a partnership with German tuner Irmscher.
It’s another clear signal that Chinese brands are ready to play the long game in Europe, and they’re doing it by appealing directly to the continent’s performance heritage and partnering with known and respected brands.
The first results of what is being called a long-term partnership is the Leapmotor i C10 by Irmscher, a limited run, 250 unit sports crossover built for the German market — and, with nearly six hundred hp on tap, the German autobahn, too!
The Irmscher version of the i C10 features a more prominent rear spoiler and a new set of five-spoke alloy wheels wrapped in low-profile, high-performance rubber, sure, but the real magic lies beneath the car’s skin.
Irmscher has fitted a firmer suspension setup specifically engineered to sharpen the SUV’s handling, making it more suited to the Leapmotor’s already potent, dual-motor AWD powertrain. That powertrain remains largely unchanged, offering a hefty 590 hp (440 kW) for a zippy 0-100 km/h (0-62 mph) sprints in under 4 seconds.
Built to move
The electric motors get power from an 81.9 kWh li-ion battery pack, good for an estimated range of 437 km (272 miles), positioning it as a performance-oriented variant of the standard crossover rather than a long-distance tourer (and, yes, I know what “GT” stands for, I’m just choosing to ignore the baked-in irony).
Priced from €49,900 in Germany (about $57,600 US, as I type this), the Irmscher i C10 commands a €5,000 premium over the standard flagship C10, but the pricing strategy is just as calculated as the Irmscher partnership itself.
By pricing the car well into Mercedes and BMW territory, Stellantis is showing that its Chinese-developed EVs aren’t just competing on cost alone. So, while the tariffs aim to protect the European car brands in their home markets by raising their prices, Leapmotor and Irmscher are betting that European drivers will willingly pay more for a Chinese EV that delivers authentic performance.
Take a look at the photos provided, below, and let us know what you think of Leapmotor’s chances in the comments.
SOURCE | IMAGES: Stellantis; via CarScoops.
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Canadian heavy equipment dealer Nors and Volvo CE are kicking off the season of giving early, handing over the keys to a brand-new Volvo L25 Electric compact wheel loader to Habitat for Humanity!
Volvo CE’s donation to Habitat for Humanity Greater Toronto Area (Habitat GTA) marks the nonprofit’s first-ever electric construction machine. The asset will be put to work immediately on a 30-home affordable housing project in Brampton as a quiet, zero-emission alternative to diesel for the site’s preparation.
For the volunteers and staff at Habitat GTA, that fantasy of a quiet, fume-free job site is now a reality. “Much of our equipment is older than some of our volunteers” admitted Ene Underwood, CEO of Habitat GTA. This makes the electric Volvo loader a massive leap forward for the volunteers, proving that electric machines are ready to do real work right now, even for organizations operating on tight budgets — but you shouldn’t mistake the decision as pure charity.
The L25 Electric donation is just an opening salvo for Nors’ new “Compact Solutions, Community Impact” marketing campaign, and the company has already committed to donating two more Volvo CE electric machines to worthy organizations across Canada. “We’re … helping build a better world for future generations,” said Paul George of Nors.
It’s a smart PR play, for sure, but it’s also a powerful, real-world demonstration program that puts its money where its mouth is and directly tackles the, “but I’ve never seen one!” barrier to battery electric equipment adoption.
As far as equipment goes, the Volvo L25 Electric is perfect for the infill development and residential lots where Habitat builds. As Agako Nouch of Volvo CE pointed out, the loader eliminates the noise and air quality issues that are major headaches when building in existing neighborhoods. It’s an example of how electrification can fundamentally improve the relationship between construction sites and the communities they serve.
Nors is inviting Canadians to nominate other nonprofits or municipalities that could benefit from an electric excavator or wheel loader. It’s a public consultation, not a contest, and the final two recipients will be announced on December 16th. It’s a genuine chance to put more electric iron to work where it can do the most good.
Electrek’s Take
A new, turbocharged section 179 in the US tax code means it’s a great time to buy some electric equipment assets for your construction fleet, and with these Volvo wheel loaders proving themselves day in and day out on job sites like these, in the cold AND heat of Toronto, you can be sure they’ll do your job, wherever that is.
SOURCE | IMAGES: Volvo CE.
If you drive an electric vehicle, make charging at home fast, safe, and convenient with a Level 2 charger installed by Qmerit. As the nation’s most trusted EV charger installation network, Qmerit connects you with licensed, background-checked electricians who specialize in EV charging. You’ll get a quick online estimate, upfront pricing, and installation backed by Qmerit’s nationwide quality guarantee. Their pros follow the highest safety standards so you can plug in at home with total peace of mind.
Ready to charge smarter? Get started today with Qmerit (trusted affiliate).
FTC: We use income earning auto affiliate links. More.
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