Japan Could Post All Time High Earnings In 2015

A new report from Citi Equity Strategy notes that Japan could post record earnings in FY2015. Analyst Kenji Abe concludes that even with the yearly tax hike, the  industrial production will increase in parallel, owing to the Abenomics led recovery. In light of the Q2 earnings, Citi has increased its FY3/15 TOPIX EPS estimate to 89.3, whereas the index is expected to reach 1590. Citi estimates a sales growth forecasts of 9.6% in FY3/14 and 5.5% in FY3/15.

This is a pretty big statement since with an EPS of 89.3, TOPIX earnings will eclipse their pre-U.S. financial crisis peak which Citi calls pre-Lehman peak. According...