MILAN (Reuters) - European companies are expected to report a 26.3% drop in fourth quarter earnings, according to Refinitiv I/B/E/S data, as new lockdown measures to fight a second COVID-19 wave slow down the region's economic recovery.
The estimates -- which relate to companies listed on the STOXX 600 equity benchmark -- are broadly unchanged compared to those released last week. They come ahead of a clear improvement predicted for the first two quarters of 2021 when earnings are set to rise 40.4% and 75.1% respectively.
The European earnings season starts next week with seven STOXX 600 companies due to report their quarterly updates.
European earnings fell 24.7% and 50.8% respectively in the third and second quarters of 2020, according to Refinitiv I/B/E/S.