Profitability Issues

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 June 21, 2013:

from page 17:

(click on charts to enlarge images)

CY Bottom-Up EPS vs. Top-Down Mean EPS (Trailing 26-Weeks)

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from page 18:

Calendar Year Bottom-Up EPS Actuals & Estimates

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

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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 increase revenue and profitability.

As many are aware, Thomson Reuters publishes earnings estimates for the S&P500.

The following estimates are from Exhibit 12 of “The Director’s Report” of June 24, 2013, and represent an aggregation of individual S&P500 component “bottom up” analyst forecasts:

Year 2013 estimate:

$111.01/share

Year 2014 estimate:

$123.65/share

Year 2015 estimate:

$135.92/share

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StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by 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 increase revenue and profitability.

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 June 21, 2013:

Year 2013 estimates add to the following:

-From a “bottom up” perspective, operating earnings of $109.55/share

-From a “top down” perspective, operating earnings of $109.16/share

-From a “top down” perspective, “as reported” earnings of $102.80/share

Year 2014 estimates add to the following:

-From a “bottom up” perspective, operating earnings of $123.34/share

-From a “top down” perspective, operating earnings of $119.57/share

-From a “top down” perspective, “as reported” earnings of $116.90/share

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StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by 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 increase revenue and profitability.