London Stock Exchange Group’s I/B/E/S shows Stoxx Europe 600 constituents’ Q3
Profits are now expected to rise 21% YoY, up from last week’s 19.4% forecast,
driven mainly by energy and materials and potentially the second-best showing in
nearly 14 quarters. Ex-energy profits are forecast up 9.7% YoY; revenue is seen
rising 10.6% YoY. Deutsche Bank said companies have largely been able to pass
higher prices to customers, boosting sales, and that energy costs represent a
smaller share of expenses than some market reports imply. Energy sector profits
are projected to surge 115.9%—linked to recent US/Israeli actions involving Iran
and a Ukrainian drone strike on a Russian refinery—while real estate profits are
forecast to fall 71.5%. Investors will watch ASML and Ericsson results next week
for clues on the broader earnings season.
