Europe Inc outlook improves, but still points to paltry earnings

April 23 (Reuters) - The outlook for European corporate health ​has ⁠slightly improved, the latest LSEG I/B/E/S ​forecasts showed on Thursday, even as a fragile détente in the Middle East seems increasingly murky ​and ‌most companies are set to post meagre profit growth.

European blue-chips, excluding energy majors, are ⁠expected to report a 0.4% increase in first-quarter ⁠earnings on average, slightly better than ​the 0.3% gain analysts expected a week ago.

On the other hand, revenues for large non-energy companies are expected to fall 0.9% on average. Falling revenues and growing profits ​could ‌be a sign that companies' efforts to cut costs and restructure businesses are paying off.

* Earnings of companies included in Europe's benchmark STOXX 600 index are expected to rise by 3.2%, though the average is skewed by the ​energy sector, which is forecast to deliver 27% growth

* Oil and gas firms ‌have benefitted from higher crude prices due to the war in the Middle East

* The forecast contrasts with ‌pre-war estimates: energy majors' first-quarter profits were expected to fall 2.0% as of February 26

* Crude futures are about 45% higher than before the war, supported by stalled peace ​talks between Iran and the U.S. and continued restrictions on trade through the Strait of ‌Hormuz

* Earnings of real estate companies and utilities are expected to fall by 15.4% and 13.6%, respectively, according to the I/B/E/S report

* Profits of technology companies, ⁠on the ⁠other hand, are seen growing 12.8%

* Investors will closely ‌watch results of more than 80 companies next week to see how they expect to navigate ​the year, as the ​earnings season gains steam

* Nestle beat first-quarter sales ‌forecasts and stuck to its annual outlook on Thursday, saying it had so far seen "very little impact" from the war in the Middle East on its global business