Nov 29 Reuters After a disappointing 2024, Latin American companies are expected to see earnings rebound around 16 next year, JPMorgan calculations showed, with almost all countries except Colombia set for doubledigit growth.
This year, earnings at companies in the region are estimated to have contracted by 24, JPMorgan analyst Cinthya Mizuguchi said in a note to clients.
For 2024, LatAm stands as the worst region both in terms of performance but also for yearend earnings outlook, said Mizuguchi in the note published late Wednesday.
FX depreciation played a large role in this deterioration of expectations, but the outlook for 2025 seems brighter, Mizuguchi added.
Emerging markets have felt the pain of a strong dollar more broadly this year with the greenback having strengthened nearly 5 since the start of the year against a basket of currencies.
On the sector front, Mizuguchi expects doubledigit growth for energy, industrials, financials, tech, healthcare and telecom after sharp contractions this year. However, consumer discretionary was expected to be an outlier and in line for a contraction of 9 in 2025, though that comes after a 136 increase this year.
Earnings growth at companies in Brazil and Mexico are estimated to hit about 15 and 14 respectively next year.
On an equity index level, it has been a painful year for Latin America, with the regional MSCI index having stumbled 25 so far this year.
In dollar terms, Brazil39;s MSCI index and peer Mexico have…