Countries around the world are forcing people to stay at home in an attempt to contain the fast-spreading virus, leading to businesses shutting down and curtailing economic activity.
Companies listed on the pan-European STOXX 600 are now expected to report an average 30.2% decline in earnings in the second quarter, down from the 21.9% drop forecast a week ago.
For the third quarter, analyst expectations are now set for a 21.6% fall in earnings versus a 15.4% drop previously.
"Given the more total stop most economies are experiencing this time, the trough in activity should be deeper than in 08/09, but the rebound is also likely to be higher and quicker," Barclays European equity strategist Emmanuel Cau said in a note, referring to the global financial crisis of 2008-9.
The British bank said it expected 2020 earnings for companies in the region to fall 30% to 40%.
Before the virus outbreak, analysts were expecting Europe to end its corporate recession, which lasted throughout 2019, but those hopes have since been quashed.
Companies have also been cutting or suspending dividends as their cash flows dry up.
(Reporting by Thyagaraju Adinarayan; Editing by Dhara Ranasinghe and Mark Potter)
