Europe’s earnings boom widens beyond energy and AI

By Samuel Indyk LONDON, Oct 20 (Reuters) European companies are expected to deliver another quarter of exceptional earnings growth, again driven mainly by profits at energy companies and those pivotal to the datacentre buildout, although signs are emerging of strength elsewhere. Third-quarter earnings for the pan-regional STOXX 600 are expected to grow 20.7% from a year ago, according to LSEG I/B/E/S, a ​slowdown from the second-quarter pace of 24%, but still among the fastest in years. With over half of the index s market ‌capitalisation reporting over the next two weeks, here is what you need to know as the earnings season begins: 1/ WHERE ARE THE DOWNGRADES? In the past, analysts have typically cut earnings estimates ahead of reporting season. This time, in aggregate, they have raised forecasts, suggesting better-than-expected growth, optimism over AI spending and elevated energy prices will lead to stronger profit growth. Some of these dynamics look a little different than usual