One-sixth of Europe’s STOXX 600 equity index reports second-quarter results July 25-29, and Refinitiv I/B/E/S forecasts earnings to have grown 22% year-on-year.
That headline figure masks disparities; earnings growth at energy firms basking in the glow of $100-a-barrel oil is seen at 185%, while real estate businesses will show a 70% drop, Refinitiv predicts.
Statements from retailers, heavy industry and hospitality firms may show how much pain is being inflicted by energy shortages and high inflation. The likes of Airbus, Volkswagen and Mercedes will cast light on the state of European exporters.
Bank earnings, expected to have slowed around 16%, include numbers from UBS, Credit Suisse, Deutsche, Barclays and BNP Paribas.
The Q2 season will show if European shares are correctly valued around 11.5 times forward earnings, versus their 14% long-term average, or need to cheapen further.