European corporate outlook continues to improve as earnings season gathers steam

July 23 (Reuters) - Estimates for European blue-chip companies' earnings have improved, the latest LSEG I/B/E/S data showed on Wednesday, as soaring energy-sector profits are set to help deliver the best growth in more than three years.

Companies on Europe's benchmark STOXX 600 index are expected to report earnings growth of 17.3% in the second quarter, according to the data that is based on results from 77 companies and market estimates for those that are yet to report.

Although all but one sector — healthcare — are expected to post profit growth, the aggregate rate is seen at a more moderate 7.2% when excluding the energy sector's 122.6% estimated growth rate.

Revenues for European blue-chips are seen growing by 11.5%, their best rate since the last quarter of 2022, finally breaking a streak of negative or flat growth in the past 13 quarters.

Shares of TotalEnergies and Repsol climbed on Thursday after their second-quarter results were met positively by the market, while Franco-Italian chipmaker STMicroelectronics fell after its earnings missed market estimates.

Investors will also be closely monitoring the index next week, as the bulk of the STOXX 600 companies — including Europe's biggest banks, industrials and carmakers — are due to report their results.

(Reporting by Javi West Larrañaga, editing by Milla Nissi-Prussak)