LONDON May 4 With roughly half of Europe's
major companies having reported first-quarter results, more than
80 percent of the firms that have reported are posting revenues
ahead of analysts expectations, underscoring the recovery in
demand that is fueling the turnaround in corporate fortunes.
Revenues, a clearer measure than profits which can often get
a boost from cost-cutting, are coming in 4 percent ahead of
market forecasts, with financials and energy companies
delivering the biggest beats, according to Thomson Reuters
Industrial companies, which are closely geared to economic
growth, in particular have seen an impressive pick-up in
revenue, with more than 95 percent of firms which have reported
Analysts have pointed to a rebound in growth in emerging
markets and the domestic European economy helping construction
firms and mining stocks.
Companies such as Atlas Copco, BP and BASF
are among those handily beating estimates.
Overall, European earnings are currently the brightest
they've been in 7 years, a fact that is drawing more investors
back into the region's equity markets. Profit growth for the
first quarter is expected to clock in at more than 10 percent.
(Reporting by Kit Rees, Editing by Vikram Subhedar)