2Q 2013 S&P500 Earnings Commentary

In today’s (August 14,2013) Wall Street Journal, an article titled “Shrinking Profits May Keep Stocks’ Records Safe” discusses quarter-to-date S&P500 earnings.

Notable excerpts include:

With 90% of companies in the S&P 500 having reported second-quarter results, firms are on track to post 2.2% earnings growth from the year-ago quarter. That is the second-lowest growth rate since the depths of the financial crisis, and down from previous periods. Earnings among the large U.S. companies tracked by the index rose 3.4% in the first quarter and 5.6% in the fourth quarter of 2012.

And the gains from earlier this year have been driven largely by corporate cost cutting and a bounceback by financial companies. Excluding financials, profits are on track to be down 2.9% in the second quarter from last year, according to FactSet.


Meanwhile, stock analysts have been cutting profit forecasts for the second half of the year. Wall Street now expects 4% earnings growth for the third quarter, down from 6.6% forecast at the end of June.

There is also a notable graphic in the article that shows the sales and earnings growth for the S&P500 since 2008, with a narrative stating “Growth at S&P 500 companies has trailed off, leading analysts to trim sales and profit expectations.”


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


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