(Bloomberg) -- Fourth-quarter earnings misses in Europe haven’t been this bad for at least four years, as a slowdown in consumer demand stifles profits. 

With about a third of companies in the MSCI Europe Index having reported to date, energy, industrials and consumer companies have disproportionately fallen short of expectations.

Industrials had a difficult year, with the percentage of misses steadily rising throughout 2023 as client spending dried up. Energy giants Equinor ASA and TotalEnergies SE delivered disappointments. 

There was some divergence within industries, with highs and lows registered in the luxury, health care and tech sectors. For example, strong earnings from LVMH SE, Hermes SCA and Richemont SA were in stark contrast to a profit warning from Burberry Plc and disappointing results from Hugo Boss AG. 

Here are five charts that show the ups and downs of the season so far.

Chart 1: A season of misses

About 53% of the companies in the MSCI Europe Index that have reported so far missed estimates, while just over a third posted earnings beats. That’s the highest percentage of misses since early 2020, when Bloomberg Intelligence started its European earnings tracker. Just 13% of the companies in the index that have reported so far matched analyst expectations.

Chart 2: Industrial weakness

Atlas Copco AB, which manufactures assembly tools for chipmakers, was hit by the slowdown in demand in the semiconductor industry. Siemens AG saw orders of factory-automation software plummet in China.

A.P. Moller-Maersk A/S shares plunged last week after the shipping company said the current boost to freight rates from the Red Sea conflict will soon fade. DSV A/S stuck to its financial targets, and BI said it’s expected to continue benefiting from the disruption.

Chart 3: Tech rises above

Technology is one of only two sectors so far to have seen more beats than misses, led by big wins by German software giant SAP SE and Dutch chip equipment maker ASML Holding NV.

Chipmakers themselves fared worse as they contended with a global slowdown in demand, culminating in disappointing results from two of Europe’s biggest players, STMicroelectronics NV and Infineon Technologies AG.

The resulting semiconductor inventory buildup and lower capital expenditure will probably suppress European tech earnings in 2024, BI predicts. This year may be a “transition” toward a very strong growth cycle into 2025, Bernstein analyst Sara Russo said. 

Chart 4: Betting on gambling’s success

Gambling companies have reported strong fourth-quarter results so far, with bright prospects ahead. 

Evolution AB benefited from rapid revenue growth in Asia — 33% in the fourth quarter — where it sees “huge” potential to tap the region’s growing population. 

Chart 5: Novo leads the way

Novo Nordisk A/S’s blockbuster weight-loss drugs, Wegovy and Ozempic, propelled earnings in the health care sector. The Danish drugmaker became the second-ever European company to top $500 billion in market value last month, bolstered by an upbeat outlook. Much of this hinges on whether it can continue to scale up manufacturing capacity to keep up with demand while fending off competition from Eli Lilly & Co.

The rest of the sector has faced more mixed fortunes, however, as peers try to stay relevant.

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