European company profits seen up 21.9% as energy majors cash in on war volatility
STOXX 600 companies are expected to report average third-quarter earnings growth of 21.9%, LSEG data show, driven by energy majors whose profits are forecast to jump 134.1%. Excluding energy, growth is seen at a more modest 8.4%.
Companies in Europe’s STOXX 600 index are expected to report average third-quarter earnings growth of 21.9%, up from last week’s 20.7% forecast and the second-best rate in four years, according to LSEG data cited by Reuters on Thursday, 22 October.
Energy as the outlier
Energy majors, whose trading desks profit from volatility and disruption caused by the US-Iran war, are forecast to post earnings 134.1% higher than a year earlier. Excluding energy, STOXX 600 profits are expected to rise by a more moderate 8.4%. Revenue is seen growing 13.3%, the best showing since the third quarter of 2022.
Caution remains
Reuters noted that investors may still be wary, given higher oil prices and soaring government borrowing costs that are fuelling fears of a replay of the euro zone debt crisis.
Also available in: Саха тылаРусскийEspañol中文Portuguêsالعربية