Fra Thomson Financial:
Second quarter earnings are expected to decline 9.9% from Q2 2015. Excluding the Energy sector, earnings are expected to decline 8.0%.
Second quarter revenue is expected to decline 6.1% from Q2 2015.
Two companies in the STOXX 600 have reported earnings to date for Q2 2016. Of these, one reported results exceeding analyst estimates. In a typical quarter 49% beat analyst EPS estimates.
Two companies in the STOXX 600 have reported revenue to date for Q2 2016. Of these, both reported revenue above analyst estimates. In a typical quarter 54% beat analyst revenue estimates.
The forward P/E ratio for the STOXX 600 is 14.0. There are 12 STOXX 600 companies with quarterly estimates expected to report Q2 2016 earnings during the week of July 11.
The estimated earnings growth rate for the STOXX 600 for Q2 2016 is -9.9%. The STOXX 600 expects to see share-weighted earnings of €66.9B in Q1 2016, compared to share-weighted earnings of €74.2B (based on the year-ago earnings of the current constituents) in Q2 2015. Two of the ten sectors in the index expect to see an improvement in earnings relative to Q2 2015.
The Utilities sector has the highest earnings growth rate for the quarter, while the Energy sector has the weakest anticipated growth compared to Q2 2015. The Utilities sector has the highest earnings growth rate (7.8%) of any sector. It is expected to earn €2.4B in Q1 2016, compared to earnings of €2.2B in Q2 2015.
One of the three industry groups in the sector is anticipated to see higher earnings than a year ago. The Electric Utilities & IPPs industry group has the highest growth rate within the sector at 10%.
The Energy sector has the lowest growth rate (-30.1%) of any sector. It is expected to earn €4.4B in Q2 2016, relative to earnings of €6.3B in Q2 2015. The Oil & Gas industry group has the lowest growth rate within the sector at -47%.
