S&P500 Earnings Trends – July 2016

S&P500 earnings trends and estimates are a notably important topic, for a variety of reasons, at this point in time.

FactSet publishes a report titled “Earnings Insight” that contains a variety of information including the trends and expectations of S&P500 earnings.

For reference purposes, here are two charts as seen in the “Earnings Insight” (pdf) report of July 15, 2016:

from page 19:

(click on charts to enlarge images)

S&P500 earnings estimates

from page 20:

S&P500 annual EPS

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RevSD, LLC offers the above data and projections for informational purposes only, and does not necessarily agree with information provided by these outside parties.

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ProfitabilityIssues.com is published by RevSD, LLC (RevSD.com).  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

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S&P500 EPS Forecasts From Standard & Poor’s Dated July 13, 2016

As many are aware, Standard & Poor’s publishes earnings estimates for the S&P500.

For reference purposes, the most current estimates are reflected below, and are as of July 13, 2016:

Year 2016 estimates add to the following:

-From a “bottom up” perspective, operating earnings of $113.86/share

-From a “top down” perspective, operating earnings of N/A

-From a “bottom up” perspective, “as reported” earnings of $104.50/share

Year 2017 estimates add to the following:

-From a “bottom up” perspective, operating earnings of $133.54/share

-From a “top down” perspective, operating earnings of N/A

-From a “bottom up” perspective, “as reported” earnings of $123.97/share

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RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

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ProfitabilityIssues.com is published by RevSD, LLC (RevSD.com).  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

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Two Charts Of S&P500 Net Profit Margins

For reference purposes, below are two charts depicting net profit margins for the S&P500.  Both charts are from the FactSet Earnings Insight report (pdf) dated July 8, 2016, page 23.

The first chart depicts S&P500 net margins (TTM) since July 31, 2006, as depicted:

S&P500 trailing net margins

The second chart below shows S&P500 quarterly net margins from Q4 2013 through Q1 2016, and projected net margins from Q2 2016, as depicted:

S&P500 Net Margins

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RevSD, LLC offers the above data and projections for informational purposes only, and does not necessarily agree with information provided by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC (revsd.com).  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

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S&P500 Sales Per Share Charts – July 2016

The FactSet Earnings Insight report of July 8, 2016 (pdf) contains two charts on page 22 depicting S&P500 revenues on a Sales Per Share (SPS) basis.

For reference purposes, below are the two charts depicting S&P500 Sales Per Share.

The first chart depicts S&P500 annual revenues (and future estimates) on a Sales Per Share (SPS) basis since the year 2006:

S&P500 Sales Per Share

The second chart depicts S&P500 quarterly revenues (and future estimates) on a Sales Per Share (SPS) basis since Q4 2013:

S&P500 Sales Per Share

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RevSD, LLC offers the above data and projections for informational purposes only, and does not necessarily agree with information provided by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC (revsd.com).  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

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Businesses’ Expectations For Short-Term And Long-Term Unit Costs

The Federal Reserve Bank of Atlanta publishes a monthly report titled “Business Inflation Expectations” (BIE) that contains statistics from a survey of regional businesses’ views on various factors that impact profitability.  These factors include unit costs, unit cost expectations, sales levels, profit margins, and other factors.

As described on the site:

Approximately 300 panelists receive the survey each month. Panelists represent businesses of various sizes headquartered within the Sixth District, which encompasses Alabama, Florida, Georgia, and sections of Louisiana, Mississippi, and Tennessee. Panelists range from executives of large corporations to owner-operators of small businesses. The industry composition of the panel roughly reflects the makeup of the national economy. Nevertheless, survey responses are weighted by industry shares of national gross domestic product.

An excerpt from the July 2016 BIE Survey dated July 13, 2016 (involving 244 firms responding):

Respondents indicated that, on average, they expect unit costs to rise 1.7 percent over the next 12 months. Inflation uncertainty increased to 2.4 percent. Firms also report that, compared to this time last year, their unit costs are up 1.5 percent. Respondents’ sales levels, compared to what they consider normal conditions, declined somewhat to a diffusion index value of -14 compared to -10 in June. Profit margins also declined, with a diffusion index value of -20 compared to -17 in June.

This month’s “quarterly question” concerned “Long-term inflation expectations.”  An excerpt:

Over the long term—that is, per year over the next five to 10 years—respondents expect unit costs to increase 2.6 percent, on average, unchanged from the April reading. Respondents’ uncertainty (variance) regarding this expectation increased to 2.4 percent.

This month’s “special question” was the “Effect of Brexit on uncertainty.”

The report also includes a variety of charts and tables depicting respondents’ answers.

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RevSD, LLC offers the above commentary for informational purposes only, and does not necessarily agree with all (or any) of the views expressed by these outside parties.

—–

ProfitabilityIssues.com is published by RevSD, LLC.  RevSD, LLC is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and given these conditions, offers corporations and businesses advice, strategies, and actionable methods on how to optimally increase revenues and profitability.

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