Europe's earnings growth seen easing from Q2 levels ahead of peak reporting season

By Reuters News

Oct 1 (Reuters) - Analysts expect third-quarter earnings for Europe's blue-chip companies to rise 19.4% from a year ago, driven largely by the energy sector, although growth is set to slow down from the second quarter, LSEG I/B/E/S data showed on Thursday.

Excluding energy, STOXX 600 .STOXX earnings are expected to grow 9.9%, with makers of cyclical consumer products growing the fastest, followed by the technology sector for which analysts have raised their growth forecast to 23.8% from 13.1% in July.

  • Energy earnings are forecast to rise 98.6%, slower than the 138.6% growth in the second quarter

  • The sector's lead is driven by fuel prices, as Brent rose around 14% in September and diesel refining margins hit a record high

  • Real estate is expected to post the sharpest decline, with earnings seen falling 71.4% from a year ago

  • STOXX 600 companies' revenue is expected to rise 10.6%, or 4.3% excluding energy, with sales forecast to fall in four sectors

  • H&M HMb.ST, the first member of the benchmark index to report, beat profit forecasts on one-off US tariff refunds, but its sales stagnated

  • Analysts see fourth-quarter earnings rising 35.1%, but the index started the quarter with a 1.3% fall as bond yields rose

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