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Europe Inc profits seen declining further in third quarter – Refinitiv data

Earnings and revenue expectations for the third quarter have deteriorated further for European companies, according to data on Tuesday, as the region continues to struggle with Brexit, the protracted U.S.-China trade war and Italy’s political crisis.

Companies listed on the pan-European STOXX 600 index are expected to report a 2% decline in earnings for the July-September quarter, which would mark the third straight quarter of deterioration, according to the latest data from I/B/E/S Refinitiv. Analysts had expected a 1% drop two weeks ago.

With the second-quarter earnings season nearly over, profits are expected to fall 2.4% mainly dragged down by big disappointments in energy, mining and consumer cyclical sectors. This also represents a corporate earnings recession in the region following a decline in Q1.

Revenue for the second quarter is seen rising 3.1%, but it is expected to decline 0.2% in Q3, the first negative reading since Q1 2018.
Source: Reuters (Reporting by Thyagaraju Adinarayan; editing by Josephine Mason)

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