Key facts
- European companies' Q3 earnings growth forecast improved to 21.9% from 20.7% last week.
- Energy majors' earnings are expected to rise 134.1% year-on-year.
- Excluding energy, STOXX 600 companies' earnings are forecast to grow 8.4%.
- European companies' Q3 revenue growth forecast improved to 13.3% year-on-year.
European companies' earnings outlook has slightly improved, with the STOXX 600 index expected to report quarterly earnings growth of 21.9% on average, according to LSEG forecasts. This figure represents an increase from the previous week's 20.7% forecast. Energy majors are a significant contributor, with their earnings anticipated to surge by 134.1% year-on-year due to trading desk profits from market volatility. Excluding the energy sector, other companies on the STOXX 600 are projected to see more moderate gains of 8.4%. The outlook for European blue-chip companies' third-quarter revenue has also improved, with growth now seen at 13.3% from a year ago, marking the best performance since the third quarter of 2022. However, despite these positive forecasts, concerns persist among investors regarding higher oil prices and rising government borrowing costs.