Analysts expect third-quarter earnings at major European companies to rise 19.4% from a year earlier, according to data published on the first of the month by LSEG's IBES. While the energy sector is the main driver, the pace of profit growth is expected to slow from the second quarter. Excluding the energy sector, companies in the STOXX Europe 600 index are seen posting profit growth of 9.9%, with consumer cyclical goods makers showing the strongest growth, followed by the technology sector. Analysts raised their profit-growth forecast for the technology sector to 23.8% from 13.1% as of July. The energy sector is expected to post profit growth of 98.6%, but that would be a slowdown from 138.6% in the second quarter, with high fuel prices supporting the strong profit growth; North Sea Brent prices rose about 14% in September, and diesel refining margins hit a record high. The real estate sector, meanwhile, is expected to see the sharpest decline, with profit down 71.4% from a year earlier. Revenue for STOXX Europe 600 constituents is seen rising 10.6%, or 4.3% excluding the energy sector, with four sectors expected to post lower revenue. Sweden's H&M, the fashion retail giant and the first index constituent to report results, beat profit expectations thanks to a temporary U.S. tariff refund, but its revenue growth was lackluster. Analysts expect fourth-quarter profit growth of 35.1% for index constituents, though the index fell 1.3% on the first day of the quarter amid rising bond yields.
H & M Hennes & Mauritz AB (publ)H&M beat profit expectations thanks to a temporary U.S. tariff refund, though revenue growth was lackluster.
