off-the-wire

Energy expected to drive European earnings as underlying growth slows

Kitco Media
By Reuters
Published:
Updated:
Reuters
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July 9 (Reuters) - A surge in energy profits linked to higher oil ​prices is set to drive ‌European blue-chip earnings growth in the second quarter, masking weaker underlying ​momentum across the broader market, ​forecasts showed on Thursday.

STOXX 600 (.STOXX), ⁠companies are forecast to report ​earnings growth of 15.3%, according ​to LSEG IBES data, but growth falls to 6.0% when energy companies are ​excluded.

Revenue growth shows a ​similar pattern, with second-quarter sales forecast to ‌rise ⁠10.5% overall but just 3.9% outside the energy sector.

Although gains are becoming more broad-based, with ​eight of ​10 ⁠sectors expected to grow compared with five in ​the first quarter, energy companies ​are ⁠expected to see earnings more than double, far outpacing growth ⁠in ​other industries.

Reporting by ​Rafal Nowak and Javi West Larrañaga in ​Gdansk; Additional reporting by Editing by

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