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5 years: European companies’ profit decline
European Union listed companies look set to complete 2016 with their fifth consecutive year of earnings per share (EPS) declines.
But Morgan Stanley says their fortunes could be about to change. Analyst estimates show fourth quarter earnings updates, to be reported over the next few weeks, should register the first quarterly EPS gains in six quarters.
‘As the fourth quarter is likely to mark a return to positive EPS growth, we think results season is likely to surprise to the upside,’ say the analysts.
‘After five years of EPS declines, we think EU earnings are highly likely to grow strongly in 2017.’