Europe’s blue-chip companies are expected to report aggregate earnings growth of 23.4% in the second quarter, according to LSEG I/B/E/S data. This would be one of the strongest earnings seasons in years, driven by soaring energy and materials profits.
Energy and Materials Lead the Way
Energy companies are expected to lead the gains, with profits forecast to more than double from a year earlier after oil prices surged during the U.S.-Iran conflict. Basic materials is projected to be the second-fastest growing sector, with earnings expected to rise nearly 70%.
Excluding the energy sector, STOXX 600 companies are still expected to report earnings growth of 12.3%, suggesting the strength of the reporting season is not solely dependent on higher commodity prices. Revenue growth is expected to be more modest, with STOXX 600 companies forecast to increase sales by 11.4% from a year earlier.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
