Europe companies' Q1 profits expectations surge as earnings season gets underway

[LONDON] Earnings at European companies in the first quarter of 2021 are expected to surge 71.3 per cent from a year earlier, according to Refinitiv IBES data, as the continent's economy recovers from the downturn caused by the first wave of the coronavirus pandemic a year ago.

The data, published on Tuesday with the first quarter earnings season in full swing, would mark the best quarter for European stocks since IBES records began nine years ago and represents a jump compared to last week's forecast of a 61.2 per cent jump.

The forecasts, which track companies listed on the pan-European Stoxx 600 equity benchmark, point to revenues rising 2.5 per cent in the first quarter, compared to 2.8 per cent a week ago.

Refinitiv said that its data showed that out of 54 companies in the Stoxx 600 having reported earnings for the first quarter, 64.8 per cent reported results exceeding analyst estimates, well above the 51 per cent beat achieved in a typical quarter.

REUTERS