Europe Inc eyes record first quarter earnings jump as economy recovers

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 19, 2021. REUTERS/Staff

MILAN (Reuters) – Europe Inc earnings are expected to have risen a record 61% in the first quarter of 2021, Refinitiv IBES data showed on Tuesday, as the global economy recovers from the severe downturn caused by the coronavirus pandemic.

That would mark the best quarter for Europe Inc since IBES records began around nine years ago and also represents a big improvement compared to last week’s forecast for a 55.7% jump.

The forecasts, which track companies listed on the pan European STOXX 600 equity benchmark, point to revenues rising 2.8% in the first quarter, compared to 2.7% a week ago.

The rise in profits would also place Europe on course for a rare outperformance versus corporate America. Earnings for the S&P 500 are expected to have risen 30.9% in the first quarter of this year.

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