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European Earnings Soar on Energy Boom
23 Jul
Summary
- European companies expected to report 17.3% earnings growth.
- Energy sector profits surge by an estimated 122.6%.
- European blue-chips forecast 11.5% revenue growth, best since 2022.
European blue-chip companies are experiencing a significant uplift in their earnings, with the latest data indicating an expected growth rate of 17.3% for the second quarter. This impressive figure is largely bolstered by extraordinary profits within the energy sector, which is projected to see a remarkable 122.6% increase.
Excluding the energy sector's contribution, the aggregate earnings growth rate moderates but remains positive at 7.2%. All sectors except healthcare are anticipated to report profit growth. This period also marks a strong showing for revenues, which are forecasted to grow by 11.5%.
This revenue growth represents the best rate observed since the final quarter of 2022, finally breaking a streak of 13 quarters with negative or flat growth. Investors are keenly awaiting results from a majority of STOXX 600 companies next week, including major banks, industrials, and carmakers.
