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European second quarter earnings growth lower than expected - Refinitiv

Published 09/07/2019, 17:17
Updated 09/07/2019, 17:21
European second quarter earnings growth lower than expected - Refinitiv
BASFN
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STOXX
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LONDON (Reuters) - Companies listed on the pan-European STOXX 600 (STOXX) index are expected to report 0.8% earnings growth in the second quarter, down sharply from an estimate of 1.8% a week ago, according to data from I/B/E/S Refinitiv on Tuesday.

That represents an improvement compared to the previous quarter when earnings fell 2%, but it's down from more than 3.6% growth expected for Q2 two months ago and a sharp decline versus the same quarter of last year when earnings rose 9.7%.

The lower forecast will underscore concerns about the corporate health of Europe Inc as results season kicks off next week amid worries about a broader macroeconomic slowdown across the region.

On Tuesday, German chemicals giant BASF (DE:BASFn) blamed a full-year profit warning on trade frictions, sending shares in the company and the global chemicals sector sharply lower.

Europe's STOXX 600 (STOXX) second-quarter revenue is seen rising 1% year-on-year, compared with 1.1% a week ago.

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