As Europe's debt crisis raises the risk of a recession,companies in the region show no signs of slowing with earningsgrowth poised to top their U.S. rivals.

Net income for companies in the Stoxx Europe 600 Index will riseby 10.5 percent in 2012 after increasing 11 percent this year, ledby carmakers such as Porsche SE and retailers including BurberryGroup Plc, according to more than 12,000 analyst estimates compiledby Bloomberg. The gauge is headed for four straight years of incomegrowth exceeding 10 percent, the longest streak since 1998, datashow.

Bulls say the 16 percent tumble in European stocks sinceDecember has created bargains because profit growth will exceed the10.1 percent estimated for U.S. companies, even though the economyin the 17-nation euro zone is expanding at one-third the pace,according to economists surveyed by Bloomberg. Bears have noconfidence in the earnings forecasts when sovereign borrowing costsare reaching records on concern Greece may default.

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