Optimism grows as Europe’s earnings season get underway

Expectations for European companies’ profits in the last quarter of 2020 are improving as the reporting season gets underway, according to Refinitiv I/B/E/S data.

Companies listed on the pan-European STOXX 600 index are expected to see a 24.3% fall in fourth-quarter earnings, an improvement compared to last week’s prediction of a 26.2% retreat.

Refinitiv added that out of the 14 companies which had already reported earnings when it compiled the data, 78.6% had exceeded analyst estimates.

Estimates for the first quarter also slightly increased compared to last week. Profits are seen rising 44% versus 43.5% in last week’s data.