LONDON (Reuters) - Companies listed on the pan-European STOXX 600 index are expected to report a 0.5% drop in second-quarter earnings, a reversal from 0.2% growth estimated a week ago, according to data from I/B/E/S Refinitiv on Tuesday.
That would be the first back-to-back quarterly earnings decline since the second and third quarters of 2016, marking an earnings recession.
It’s also down from more than 3.6% growth expected two months ago and a sharp decline versus the same quarter of last year when earnings rose 9.7%.
Europe’s STOXX 600 second-quarter revenue is seen rising 0.9%, an increase from 0.7% seen a week ago and 3.2% growth last year.
Reporting by Thyagaraju Adinarayan; editing by Josephine Mason