TURKEY - 3Q20 Earnings Estimates, 21st October

Snapshot for 3Q20 Earnings
- 3Q20 earnings season to kick off with EREGL, TKFEN and TAVHL that will announce their financials on October 22.
- For our coverage universe, we expect 19.7% YoY decline at bottom-line but 28.5% QoQ improvement.
- For non-financials, we expect 6% YoY revenue growth but 8% YoY EBITDA contraction in 3Q. On a QoQ comparison, the improvement is more visible, as we expect 38.4% revenue growth and 33.3% EBITDA growth QoQ. Thus, we expect the bottom-line of non financial companies will expand by 112% QoQ, but down by 43% YoY.
- We estimate net earnings of banks will be up by 36% YoY but down by 7% QoQ. Lower core spreads due to unfavorable TL loan repricings and the maintained elevated cost of risk levels are the main themes of 3Q20 for banking sector.
- We expect stronger results for YKBNK, GARAN, ISCTR, TSKB, EKGYO, KCHOL, SAHOL, ARCLK, YATAS, SISE, FROTO, TOASO, TTRAK, DOAS, TCELL, INDES, CCOLA, AEFES, SOKM and BIMAS while we foresee weaker results for AKBNK, HALKB, VAKBN, TRGYO, TUPRS, THYAO, PGSUS and TAVHL for 3Q20.