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European Q3 earnings seen up 0.5% vs down 0.2% last week

*

Revenues seen up 0.4% vs 0.3% fall expected last week

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Q3 results from ASML and Volvo AB due later this week

(Adds revenue forecast, context in paragraphs 3-10)

By Marleen Kaesebier and Javi West Larrañaga

Oct 14 (Reuters) - Analysts are a little more upbeat

about European companies' third-quarter results than a week ago,

according to the latest estimates compiled by LSEG I/B/E/S,

despite the latest flare-up in trade tensions between the U.S.

and China.

European companies are on average expected to report a 0.5%

year-on-year increase in third-quarter earnings, the data

showed. That is better than the average 0.2% fall predicted a

week ago.

It would, however, still be the worst quarterly performance

since the first quarter of 2024.

TARIFFS WEIGH ON EARNINGS EXPECTATIONS

On Friday, the U.S. said it would slap an additional 100%

tariff on imports from China and impose export controls to China

on all critical U.S.-made software from November 1 in a move

that has weighed on the pan-European STOXX 600 this

week.

Before U.S. President Donald Trump announced his tariff

plans in February, analysts were expecting European companies to

report 12.5% growth in third-quarter earnings, on average.

Since then, around 72% of companies in Europe, the Middle

East and Africa tracked by Reuters have flagged price hikes, as

global import taxes have surged.

Third-quarter revenue estimates for European companies

listed on the STOXX 600 have also improved from last week,

according to the LSEG data. They are now forecast to rise 0.4%

year-on-year, against the 0.3% fall expected last week.

Investors will be on alert for any company comments about

tariffs, with chipmaking supplier ASML and automaker

Volvo AB due to report earnings this week.

On Tuesday, French tyre producer Michelin cut its

full-year operating income guidance, citing worse than expected

business conditions in the North American market, sending its

shares and those of other European car part suppliers down.

That followed similar comments from German automakers

Porsche, Mercedes-Benz and Daimler Truck

.