After almost six years of no earnings growth for Europe, there is hope the region's companies hit an inflection point during this year's third quarter, according to the Head of European Equity Strategy at UBS.
With over half of European companies having already reported, Nick Nelson says the recovery seen in revenue growth is key to driving positive momentum in earnings.
"Revenues have had the best net beats for five quarters…this is critical because we've had no earnings growth in Europe for six years and the last year and a half we've had no topline growth. And it's been very hard for companies to generate EPS (earnings per share) growth with no topline growth."
"To see that starting to improve, it's just a glimmer but it seems we may be at an inflection point there," he continued.