Equity 22 March 2004, 4:46pm

Earnings: What does future hold?

Portfolio

In the past quarter year just one Hungarian blue chip stock, namely OTP, out of the four has improved on its earnings forecast by financial analysts. According to our EPS consensus for, analysts have reduced profit forecasts in the case of most companies for 2004, though optimism fills the air regarding 2005. For the first time, our EPS consensus also includes FHB, which based on the collective opinion of market analysts could very well be a shining star in the coming years in terms of profit growth.

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Is significant growth only possible in 2005?.

The diminished prognoses for 2004 is no cause for surprise, since an awareness of the facts sustained in 2003 gives rise to caution. Market experts are of the opinion that a rise in BUX compiled with weighted market EPS in real terms for 2004 could be quite low, and actual expansion can only be counted on in 2005.

Market analysts are indicating slight shrinkage for those frontrunners (Demasz, Egis) that qualify in the middle of the pack. As for FHB, for which we collected consensus for the first time and has been vying for a spot in the top echelon, is expected to push its profits up by 40%.