European blue-chip earnings hit highest growth since 2022
European blue-chips report 11.5% earnings growth, the highest since 2022. Energy gains offset a slight revenue dip as companies continue to optimize costs.
European blue-chip companies are on track to grow earnings 11.5% year-on-year in the first quarter, the strongest performance since late 2022. This projection from LSEG I/B/E/S data on Thursday follows a period where revenue has lagged earnings in seven of the last eight quarters. The earnings growth reflects strong performance from the energy and financial sectors.
### Energy and Financials Drive Outperformance Surging profits in the energy sector are fueling the broader recovery. European energy majors are projected to post profits 50.4% higher than the same period last year, a sharp reversal from earlier forecasts of a 2% decline. This shift follows a rise in crude oil prices linked to conflict in the Middle East.
