28 Jan 2021
Posted in Aerospace, Defense & Security
A&D and automotive sectors saw double-digit sentiment growth in Q4 2020, says GlobalData
The aerospace & defense (A&D) and automotive sectors had the highest earnings transcript sentiment growth in Q4 2020 verses Q3, according to the filing analytics database by GlobalData, which identified a respective 13% and 12% growth.
Rinaldo Pereira, Senior Business Fundamentals Analyst at GlobalData, says: “Stoppage of travel and stay-at-home orders had lasting effects on commercial aerospace. Discussions around ‘production’ and ‘supply chain’ issues in the A&D sector rose by over 25% in 2020, compared to 2019. However, defense expenditure did not face declines in 2020, according to GlobalData’s A&D market database, and is likely to grow by around 7% in 2021.
“In Q4 2020, the A&D sector witnessed around double-digit sentiment growth due to the positivity around Airbus’ possible production ramp-up and the return of Boeing’s 737 Max. Not to mention that positivity around defense expenditure is likely to have driven sentiments for defense companies.”
On the other hand, the automotive sector witnessed adverse impacts due to COVID-19 in Q2 2020. However, pent-up demand in Q3 and Q4 2020 seems to have moderated the declines.
Pereira adds: “GlobalData does not expect light vehicle production to reach pre-COVID levels until 2023. That said, themes such as sustainability and electric vehicles influenced sentiments in Q3 and Q4 2020. It is also evident from the fact that with several companies facing uphill battles. Tesla is in the driving seat, gaining multifold in its market cap.”