October 8, 2019 / 4:42 PM / 2 months ago

Expectations for Europe's third-quarter earnings season deteriorate again

FILE PHOTO: A trader works as a screen shows market data behind him at CMC markets in London, Britain, December 11, 2018. REUTERS/Simon Dawson/File Photo

LONDON (Reuters) - Expectations for the third-quarter earnings season of European companies continue to worsen as uncertainties about Brexit, the trade policy of the Trump administration or a possible technical recession in Germany bite, data showed on Tuesday.

Companies listed on the STOXX 600 regional index are now expected to report a 3% drop in third-quarter earnings, worse than the 2.2% fall expected a week ago, according to I/B/E/S Refinitiv.

That compares with growth of 14.4% in the year-earlier quarter.

The performance would constitute the biggest quarterly fall since Q3 2016 and a prolonged corporate recession after drops in earnings in the first and second quarter this year.

Consensus for revenues is stable with a 0.3% drop in the quarter, which would be the first since Q1 2018.

Reporting by Julien Ponthus; editing by Josephine Mason

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