(Reuters) - Analysts cut their forward 12-month earnings estimates for Asian companies for a fifth consecutive month in June, citing the economic fallout from the coronavirus pandemic.
They lowered their estimates by 3.8% at end-June, after cutting their forecasts by 4.5% in May.
"Consensus estimates do not point to a return to pre-crisis EPS levels until the third quarter of 2021. And even this estimate is highly uncertain," said Daniel Morris, senior investment strategist at BNP Paribas (OTC:BNPQY) Asset Management, referring to earnings per share (EPS).
"The timing of a vaccine is the most important factor determining how quickly companies can return to pre-crisis activity levels."
Over the past 30 days, analysts have slashed Indian firms' forward 12-month earnings forecasts by 8.05% - the steepest cut in Asia, Refinitiv data shows.
Graphic: Change in Asian companies profit estimates https://fingfx.thomsonreuters.com/gfx/mkt/bdwvkaqbavm/Change%20in%20Asian%20companies%20profit%20estimates.jpg
Graphic: Change in Asian companies profit estimates this year https://fingfx.thomsonreuters.com/gfx/mkt/yxmpjlqdnpr/Change%20in%20Asian%20companies%20profit%20estimates%20this%20year.jpg
With over 700,000 coronavirus cases, India has overtaken Russia to record the world's third-highest number of infections, just behind the United States and Brazil.
Analysts lowered their forward 12-month earnings estimate for Indonesian firms by about 8% and for Japanese firms by 4.9%.
Among sectors, industrials and consumer discretionary sectors faced the biggest cut in forecasts.
Graphic: Asian companies' sector-wise profit estimates change https://fingfx.thomsonreuters.com/gfx/mkt/xlbpgomeqpq/Asian%20companies%20sector%20wise%20profit%20estimates%20change.jpg
Graphic: Asian companies sector-wise profit estimates change this year https://fingfx.thomsonreuters.com/gfx/mkt/rlgpdlqympo/Asian%20companies%20sector%20wise%20profit%20estimates%20change%20this%20year.jpg