Three Factors Behind Weak European EPS Growth

Earnings per share (EPS) growth usually spikes as economies pull out of a recession, but most analysts expect more moderate growth this time around. EPS growth estimates are expected to be in the single digits instead of the 30 percent or more that Europe has experienced after past recoveries, and it comes down to three key differences, writes Graham Secker in a recent European Strategy report from Morgan Stanley (NYSE:MS). A modest rebound in Europe’s GDP “Our economists forecast only a modest rebound in GDP growth, reflecting the persistence of some of Europe’s structural issues and continued headwinds from bank…