European Corporate Earnings Outlook Brightens Amid Strong Q2 Results
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European Corporate Earnings Outlook Brightens as Q2 Results Boost STOXX 600
Q2 Earnings Growth and Sector Performance in Europe
Improved Earnings Estimates for Blue-Chip Companies
July 23 (Reuters) – Estimates for European blue-chip companies’ earnings have improved, the latest LSEG I/B/E/S data showed on Wednesday, as soaring energy-sector profits are set to help deliver the best growth in more than three years.
STOXX 600 Index Expected Growth
Companies on Europe’s benchmark STOXX 600 index are expected to report earnings growth of 17.3% in the second quarter, according to the data that is based on results from 77 companies and market estimates for those that are yet to report.
Sector Breakdown and Energy’s Impact
Although all but one sector — healthcare — are expected to post profit growth, the aggregate rate is seen at a more moderate 7.2% when excluding the energy sector’s 122.6% estimated growth rate.
Revenue Growth Trends
Revenues for European blue-chips are seen growing by 11.5%, their best rate since the last quarter of 2022, finally breaking a streak of negative or flat growth in the past 13 quarters.
Market Reactions and Upcoming Reports
Company-Specific Stock Movements
Shares of TotalEnergies and Repsol climbed on Thursday after their second-quarter results were met positively by the market, while Franco-Italian chipmaker STMicroelectronics fell after its earnings missed market estimates.
Investor Focus on Upcoming Earnings
Investors will also be closely monitoring the index next week, as the bulk of the STOXX 600 companies — including Europe’s biggest banks, industrials and carmakers — are due to report their results.
(Reporting by Javi West Larrañaga, editing by Milla Nissi-Prussak)
