Europe Inc's recession expected to deepen as third quarter earnings outlook deteriorates: Refinitiv

This post was originally published on this site
https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEF9F0BU_L.jpg

LONDON (Reuters) – Europe’s corporate recession is expected to deepen, according to the latest forecasts, as companies struggle with uncertainties from Brexit and the protracted U.S.-China trade spat and Germany’s manufacturing recession.

Companies listed on the STOXX 600 () regional index are now expected to report a drop of as much as 3.7% in third-quarter earnings, worse than the 3% fall expected a week ago, according to I/B/E/S data from Refinitiv.

That compares with growth of 14.4% in the year-earlier quarter and would be the worst EPS since Q3 2016 when earnings fell 5%.

Companies in the region have been in an earnings recession since the second quarter when earnings dropped 2.1%, their second straight quarterly fall.

Consensus for revenue improved slightly with forecasts for flat growth, compared with a 5.9% rise a year ago and 3.3% growth in Q2.

Q4 forecasts were reined in slightly – EPS is now expected to grow 9.1%, down from 9.6% last week and forecasts are for a 3.2% rise in revenue, down from 3.4% last week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment