By Javi West Larrañaga and Marleen Kaesebier (Reuters) -The outlook for European corporate health has slightly worsened, the latest earnings forecasts showed on Tuesday. European companies are expected to report an increase of 0.2% in third-quarter earnings, on average, according to LSEG I/B/E/S data, below the 0.5% growth analysts were expecting a week ago. That […]
Health
European third-quarter corporate outlook worsens slightly
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By Javi West Larrañaga and Marleen Kaesebier
(Reuters) -The outlook for European corporate health has slightly worsened, the latest earnings forecasts showed on Tuesday.
European companies are expected to report an increase of 0.2% in third-quarter earnings, on average, according to LSEG I/B/E/S data, below the 0.5% growth analysts were expecting a week ago.
That would be the worst quarterly performance since the first quarter of 2024.
Market forecasts for third-quarter earnings have steadily deteriorated from the 12.5% growth expected in February, before U.S. President Donald Trump and his administration touted plans for a wide array of tariffs on imported goods.
REAL ESTATE TO LEAD GAINS
On the other hand, revenues for Europe-wide STOXX 600 companies are now expected to edge 0.4% higher compared to the same period last year, the data showed.
A year ago, the companies listed in the index delivered on average a 7.8% increase in third-quarter earnings and a 1.1% drop in revenues.
Out of those companies, more than 70 are set to report their results this week. Results from banks Barclays and Lloyds and Germany’s software giant SAP could set the mood for investors.
Earnings growth forecasts are the highest for the real estate sector at 4.9%, while utilities are at the bottom with a forecasted decrease of 6.1% in the quarter, according to the data.
(Reporting by Javi West Larrañaga and Marleen Kaesebier in Gdansk, editing by Milla Nissi-Prussak)