LONDON, Oct 21 (Reuters) - Europe Inc's third-quarter earnings are expected to see a double-digit decline, as any recovery in the region's corporate profits remains elusive, with the energy and financial sectors seen taking the biggest hits, according to Thomson Reuters I/B/E/S/ data.
Aggregate earnings for the constituents of the benchmark STOXX Europe 600 which report quarterly numbers are expected to fall 12.9 percent during the July-September quarter from a year ago.
Total revenues of STOXX 600 companies are forecast to have fallen 4.3 percent.
Earnings fell more than 14 percent in the April-June quarter.
The energy sector is expected to see earnings fall by more than a third as major producers suffered from sharply lower crude oil prices though these headwinds are expected to fade from the current quarter as year-on-year comparisons become more favourable.
Financials, the region's worst performing sector year-to-date, are expected to follow, with third-quarter earnings seen down by 31.9 percent. Major European banks including Deutsche Bank, Barclays and UBS are scheduled to report earnings next week.
Consumer cyclicals and industrials are expected to be the bright spots through earnings with the former expected to a post a 42 percent bump.
So far, more than 20 STOXX 600 companies have reported earnings, of which 57 percent have exceeded analyst estimates, against a long-term average of 49 percent, data showed.
Investors have shown little tolerance for earnings disappointments so far. Shares of Ericsson lost a fifth of their value last Wednesday after the company warned on profits while shares of a slew of mid-cap UK firms were hammered in the previous session after issuing weak forecasts. (Reporting by Atul Prakash, Editing by Vikram Subhedar)