Energy profits boost European earnings by 20.8%

LSEG data on Thursday showed that estimates for blue-chip companies in Europe's second quarter?earnings? have risen. Profit growth is now expected to be 20.8% compared to a year earlier. However, a large part of the increase will come from the energy sector.

Energy companies are expected to double their profits, and this will be a major factor in the earnings recovery. The overall growth rate for STOXX companies, excluding the sector, is expected to be 10.3%.

According to data from 225 companies, and market estimates of those who have not yet reported, revenue is expected to rise 11.7%. This will end four consecutive quarters of decline.

Eight of the 10 sectors in the index are expected to report profit growth.

The basic materials sector is expected to grow strongly, while technology and financials will also see a moderate double-digit increase.

This earnings season, real?estate and consumer cyclicals are expected to perform poorly.

The week ahead is another busy one for investors, as 46 STOXX600?companies are scheduled to report?results. These include energy giant BP, healthcare provider Novo Nordisk, and lender HSBC. Rafal Nowak, Gdansk. Matt Scuffham, editing.

(source: Reuters)