Europe's earnings growth seen easing from Q2 levels ahead of peak reporting season

European Blue-Chip Earnings Growth to Ease From Q2 Highs Amid Energy Surge

Q3 Earnings Outlook for European Blue-Chip Companies

Oct 1 (Reuters) - Analysts expect third-quarter earnings for Europe's blue-chip companies to rise 19.4% from a year ago, driven largely by the energy sector, although growth is set to slow down from the second quarter, LSEG I/B/E/S data showed on Thursday.

Sector Performance and Growth Drivers

Excluding energy, STOXX 600 earnings are expected to grow 9.9%, with makers of cyclical consumer products growing the fastest, followed by the technology sector for which analysts have raised their growth forecast to 23.8% from 13.1% in July.

Energy Sector Highlights

• Energy earnings are forecast to rise 98.6%, slower than the 138.6% growth in the second quarter

• The sector's lead is driven by fuel prices, as Brent rose around 14% in September and diesel refining margins hit a record high

Other Sector Trends

Real Estate and Revenue Trends

• Real estate is expected to post the sharpest decline, with earnings seen falling 71.4% from a year ago

• STOXX 600 companies' revenue is expected to rise 10.6%, or 4.3% excluding energy, with sales forecast to fall in four sectors

Company Highlights and Future Outlook

• H&M, the first member of the benchmark index to report, beat profit forecasts on one-off US tariff refunds, but its sales stagnated

• Analysts see fourth-quarter earnings rising 35.1%, but the index started the quarter with a 1.3% fall as bond yields rose

(Reporting by Rafal Nowak in GdanskEditing by Milla Nissi-Prussak)