As previously commented upon in this blog, one of the problematic aspects of today’s business environment is the continuing “lagging” nature of corporate revenue growth.
For reference purposes, below is a chart seen in the Zack’s Earnings Trends (pdf) report dated October 31, 2013. This chart shows YoY Revenue Growth for the Zack’s sectors, as well as the total S&P500, over various time periods:
There is notable commentary regarding future earnings growth seen on page 17 of the report, under the heading “Where Will the Growth Come From?” Here is an excerpt within that commentary regarding revenue growth:
Revenue growth is strongly correlated with ‘nominal’ GDP growth. If the growth outlook for the global economy is positive or improving, then it’s reasonable to expect corporate revenues to do better as well. But the global economic growth outlook is at best stable, definitely not improving as the recent estimate cuts by the IMF shows.
ProfitabilityIssues.com 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 StratX, LLC (stratxllc.com). StratX, 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.