Europe’s Profit Engine Revs Up With Recession in the Rear-View
- Analysts hiked estimates throughout the reporting season
- Citi strategists flag positive signal for European profits
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The long-awaited rebound in profit growth at European companies is set to accelerate as the economy pulls out of recession, adding fuel to record-hitting stock markets.
While corporate profits are still falling on a year-over-year basis, they rose in the first quarter versus the previous three-month period for the first time since 2022, according to Deutsche Bank AG strategist Maximilian Uleer. He sees the Stoxx Europe 600 Index’s profits growing 5% this year, compared with the consensus forecast compiled by Bloomberg Intelligence for a 3% gain.