Corporate Revenue Growth

The “lagging” nature of corporate revenue growth is a continuing characteristic of today’s business environment.

This topic has been addressed in a variety of posts and other writings, most recently in the April 29 StratX, LLC post titled “Corporate Revenues Under Pressure.”

Of note, one can see this low overall rate of revenue growth reflected in a variety of 1Q2013 operating results.  For instance, one can see that 1Q2013 revenue growth for the S&P500 Industrials Sector is expected to be .3%, according to Thomson Reuters’ “This Week In Earnings” of May 24.

There are also some notable statistics in the FactSet Earnings Insight of May 17, regarding both 1st quarter and 2nd half S&P500 revenue growth.

One excerpt regarding 1st quarter revenues:

In aggregate, companies are reporting sales that are .1% above expectations.  Over the previous four quarters on average, actual sales have exceeded estimates by .7%.

Another excerpt pertaining to 2nd half 2013 revenues:

However, estimated revenue growth rates for both Q3 2013 (3.4%) and Q4 2013 (1.9%) are expected to be well below estimated earnings growth rates. No sector is expected to see double-digit revenue growth in either quarter.


StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by these outside parties.