European Inc earnings seen down 26% in fourth quarter

FILE PHOTO: The German DAX Index board is seen during a trading session at the Frankfurt’s stock exchange, amid the coronavirus disease (COVID-19) outbreak, in Frankfurt, Germany, December 30, 2020. REUTERS/Ralph Orlowski

MILAN (Reuters) – European companies are expected to report a 26.3% drop in fourth quarter earnings, according to Refinitiv I/B/E/S data, as new lockdown measures to fight a second COVID-19 wave slow down the region’s economic recovery.

The estimates — which relate to companies listed on the STOXX 600 equity benchmark — are broadly unchanged compared to those released last week. They come ahead of a clear improvement predicted for the first two quarters of 2021 when earnings are set to rise 40.4% and 75.1% respectively.

The European earnings season starts next week with seven STOXX 600 companies due to report their quarterly updates.

European earnings fell 24.7% and 50.8% respectively in the third and second quarters of 2020, according to Refinitiv I/B/E/S.

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