European earnings seen up 47.6% in third quarter

FILE PHOTO: Bull and bear symbols for successful and bad trading are seen in front of the German stock exchange (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach/

MILAN (Reuters) – Europe Inc earnings are expected to have risen 47.6% to 96.1 billion euros ($112 billion) in the third quarter, data from Refinitiv I/B/E/S showed on Tuesday, as the region’s economic recovery continues following the severe pandemic downturn.

The estimate, based on firms listed on the STOXX 600 benchmark, is a slight improvement from last week’s 46.7% growth forecast and compares to the 42% expected early in August.

Revenues for the STOXX 600 are expected to have risen 12.2% year-on-year, also slightly up from last week’s forecast of a 12.1% growth, according to Refinitiv I/B/E/S.

Even as European companies continue to report strong growth following two record quarters, investors are increasingly wary that supply chain strains, labour shortages and surging energy prices could start to undermine profits.

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