Reuters reports that the financial outlook for companies in Europe has improved, as forecasts for first-quarter earnings have been upgraded.
According to LSEG data, European firms are expected to report an increase in earnings of 2.3% in the first three months of 2025, up from the 1.9% rise projected by analysts a week ago. Meanwhile, the consensus forecast for first-quarter revenue growth is unchanged from last week and remains at 2.3%.
About 60.1% of the 271 companies in the Europe-wide Stoxx 600 index have already provided their first-quarter earnings reports. The results exceeded forecasts, Reuters adds.
At the same time, Allianz Trade says that about 42% of companies in Europe project export revenues to drop markedly, compared to only 5% before US President Donald Trump announced sweeping tariffs on April 2.
The rest of the firms in the Stoxx 600 are expected to report their first-quarter earnings this week. The data will help assess the state of European business amid market uncertainty, Reuters says.