European Blue-Chip Q1 Earnings Rise 11.5% as Revenue Slips 0.4%

2 articles · Updated · Reuters · May 15

An 11.5% year-on-year rise in first-quarter earnings would mark the strongest growth for European blue-chips since late 2022, based on 265 STOXX 600 reports and estimates for companies yet to publish.
Energy and finance drove the upgrade: energy majors are now seen posting profits 50.4% higher than a year earlier after higher oil prices linked to the Middle East war, while 68% of financial firms beat earnings estimates.
Revenue still lags, with first-quarter sales expected to fall 0.4%; revenues have trailed earnings in seven of the previous eight quarters as companies leaned on cost cuts to protect profit.
Performance remains uneven across sectors and countries: real estate profits are projected to drop 23.9%, while Norwegian and Spanish firms lead earnings growth at 56.3% and 31.5%; Portuguese and Danish companies are seen declining 34.3% and 8.5%.
The earnings rebound has helped support equities, with the STOXX 600 up 4% this year, though it remains about 3% below pre-war levels.

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