Estimated share-weighted earnings for the S&P 500 for Q stand at $242.1B this week, above last week s $242.0B.

Transcription

1 PROPRIETARY RESEARCH EARNINGS AGGREGATES REPORTING ANALYSTS: Jharonne Martis, Greg Harrison November 18, 2011 AGGREGATE ESTIMATES AND REVISIONS The estimated earnings growth rate for the S&P 500 for Q is 17.8%. The Energy (58.9%) and Materials (32.1%) sectors have the highest growth rates for the quarter, while Utilities (1.8%) has the weakest growth rate. However, we ve seen downward revisions to earnings estimates for Q The Materials sector experienced the biggest drop from 25.6% last month to -0.3% today. (See Exhibit 2A). In the S&P 500, there have been 81 negative EPS preannouncements issued by corporations for Q compared to 23 positive EPS preannouncements. By dividing 81 by 23, one arrives at an N/P ratio of 3.5 for the S&P 500 Index. This 3.5 ratio is the largest showing since the 3.7 ratio in Q2 2001, in the midst of the 2001 recession, and above the long-term aggregate (since 1995) N/P ratio for the S&P 500 (2.3). Estimated share-weighted earnings for the S&P 500 for Q stand at $242.1B this week, above last week s $242.0B. Of the 482 in the S&P 500 that have reported earnings to date for Q3 2011, 70% have reported earnings above analyst expectations. During the week of November 21, 8 S&P 500 companies are expected to report earnings. Of these companies, a positive surprise is expected from Tyson Foods (StarMine SmartEstimate, pg 7). SECTION A: EARNINGS OUTLOOK Q3 2011: EARNINGS REVISIONS Exhibit 1A. S&P 500: Q Share-Weighted Earnings ($B) This Week in Earnings provides analysis and commentary on aggregate earnings estimate revisions, growth rates and valuations. View all Thomson Reuters Proprietary Research subscription channels. All data sourced from Thomson ONE, a complete solution for research and analytics. It offers estimates, click-through fundamentals, transcripts and guidance. Thomson ONE users can run fundamental and/or technical screens against a global dataset representing more than 100 countries and over 200,000 securities. Learn more about Thomson ONE Investment Management and request a free trial Thomson Reuters. All marks herein are used under license.

2 Q3 2011: OBSERVATIONS Of the 482 in the S&P 500 that have reported earnings to date for Q3 2011, 70% have reported earnings above analyst expectations, and this is stronger than the long-term average. The Financials, Health Care, Industrials, Telecommunications and Energy sectors have all seen significant increases in their earnings growth rates since the beginning of earnings season. However, we ve seen downward revisions to earnings estimates for Q The Materials sector experienced the biggest drop from 25.6% last month to -0.3% today. (See Exhibit 2A). This drop can be attributed to drastic decreases in commodity prices. According to the Thomson Reuters/Jefferies CRB Index, commodities prices decreased 11.5% over the course of the third quarter, putting pressure on the sector. Exhibit 2A. S&P 500: Q Earnings Growth Sector Today 3 Oct Consumer Discretionary 8.3% 13.6% Consumer Staples 5.2% 7.6% Energy 23.3% 28.8% Financials 18.6% 26.6% Health Care 4.4% 6.4% Industrials 11.2% 14.0% Materials -0.3% 25.6% Technology 8.9% 9.7% Telecom -4.6% 5.0% Utilities -4.2% 3.6% S&P % 15.0% We used Thomson Reuters StreetEvents to pull earnings conference call transcripts and found that much of the strength of earnings is coming from international revenue growth. There is still a dichotomy between robust earnings growth and global economic uncertainty. Companies with a strong presence in emerging markets and the Asia-Pacific region are seeing better growth opportunities than companies that are more dependent on the US and Europe. Software company Autodesk Inc, maker of AutoCAD among other products, beat its earnings estimate this week. This bears out the StarMine prediction in last week s report. Asian sales contributed heavily to Autodesk s earnings this quarter. Carl Bass, President and CEO discussed Asia and gave his outlook for the future in the earnings call, Asia Pacific was really strong. It has continued to outpace both the Americas and Europe for a long time, and I expect to it continue to do so (Source: ADSK earnings call 11/15/11). Abercrombie & Fitch reported results this week and missed its estimate of 0.71, posting earnings of 0.57, largely due to weak sales in its European stores. CFO Jonathan Ramsden addressed this weakness during the earnings call, Clearly, the macro environment is very difficult in Europe. Tourism has slowed down. We have certainly seen a slowing of traffic into those flagship stores, which is indicative of a macro issue (Source: ANF earnings call 11/16/11). Given global economic concerns, inflation, debt and excess spending, among other reasons, 81 companies have issued negative earning guidance and 23 companies have issued positive earnings guidance for Q4. JC Penney issued a significant negative fourth quarter preannouncement during its earnings conference call, giving EPS guidance of 0.69, compared with the consensus analyst estimate of The retailer continues to struggle with the financial difficulties affecting a core customer segment as described by Mike Ullman, Chairman, in the recent conference call, While our higher income customers responded very well to our attractions, our moderate income customers delayed their purchases of fall and winter merchandise as they continue to shop closer to need (Source: JCP earnings call 11/14/11). There has been an increase in the estimated share-weighted earnings for the S&P 500 since the start of the quarter (to $242.1B from $240.1B). Five of the ten sectors experienced downward revisions to estimates Thomson Reuters. All marks herein are used under license. TRPR_82221_97 2

3 Since July 1, the Financials (-2.6%) and Materials (-2.4%) sectors have recorded the highest percentage decreases in earnings, while the Technology (4.3%) sector has recorded the highest percentage increase in earnings. Overall, share-weighted earnings for the S&P 500 have increased by 0.8% since the start of the quarter. Since July 1, the Financials (-$1.0B) and Consumer Staples (-$375M) sectors have recorded the highest dollarlevel decreases in earnings, while the Technology (+$1.9B) sector has recorded the highest dollar-level increase in earnings. Overall, share-weighted earnings for the S&P 500 have increased by $2.0B since the start of the quarter. Q3 2011: EARNINGS SCORECARD Exhibit 3A. S&P 500: Q Earnings vs. Expectations Surprise Reported Index Sector Above % Match % Below % Factor % Total # Total # Consumer Discretionary 65% 11% 24% 3% Consumer Staples 68% 11% 22% 2% Energy 67% 7% 26% 7% Financials 63% 8% 30% 16% Health Care 82% 10% 8% 5% Industrials 79% 14% 7% 5% Materials 68% 6% 26% 4% Technology 75% 14% 11% 3% Telecom Services 38% 13% 50% 8% 8 8 Utilities 76% 6% 18% 3% S&P % 10% 20% 6% Through November 21, 482 companies in the S&P 500 Index have reported earnings for Q Of these 482 companies, 70% reported earnings above analyst expectations, 10% reported earnings in line with analyst expectations and 20% reported earnings below analyst expectations. In a typical quarter (since 1994), 62% of companies beat estimates, 18% match and 20% miss estimates. Over the past four quarters, 70% of companies beat the estimates, 10% matched and 20% missed estimates. In aggregate, companies are reporting earnings that are 6% above the estimates, which beats the 3% longterm (since 1994) average surprise factor, and matches the 6% surprise factor recorded over the past four quarters Thomson Reuters. All marks herein are used under license. TRPR_82221_97 3

4 Q3 2011: REVENUE SCORECARD Exhibit 4A. S&P 500: Q Revenue vs. Expectations Surprise Reported Index Sector Above % Match % Below % Factor % Total # Total # Consumer Discretionary 62% 0% 38% 1% Consumer Staples 65% 0% 35% 2% Energy 67% 0% 33% 5% Financials 56% 0% 44% 1% Health Care 71% 0% 29% 1% Industrials 64% 0% 36% 0% Materials 55% 0% 45% 3% Technology 72% 0% 28% 0% Telecom Services 38% 0% 63% 0% 8 8 Utilities 22% 0% 78% -4% S&P % 0% 39% 2% Through November 18, 479 companies in the S&P 500 Index have reported revenues for Q Of these 479 companies, 61% reported revenues above analyst expectations, 0% reported revenues in line with analyst expectations, and 39% reported revenues below analyst expectations. In aggregate, companies are reporting revenues that are 2% above estimates. Q3 2011: EARNINGS GROWTH RATES Exhibit 5A. S&P 500: Q Earnings Growth Earnings $B Earnings $B Growth $B Growth % Sector Q311 Q310 Q311 Q311 Consumer Discretionary % Consumer Staples % Energy % Financials % Health Care % Industrials % Materials % Technology % Telecom Services % Utilities % S&P % The estimated earnings growth rate for the S&P 500 for Q is 17.8%. The S&P 500 is anticipating shareweighted earnings of $242.1B in Q3 2011, compared to share-weighted earnings of $205.4B (based on the year-ago earnings of the current 500 constituents) in Q All ten sectors in the index are predicted to see an improvement in earnings relative to Q The Energy and Materials sectors have the highest earnings growth rates for the quarter, while Utilities sector has the weakest compared to Q The Energy sector has the highest earnings growth rate (58.9%) of any sector. It is projected to earn $35.6B in Q3 2011, compared to earnings of $22.4B in Q Six of the seven industries in the sector expect to see higher earnings than a year ago. The Oil & Gas Refining and Marketing (315%) industry and the Oil & Gas Integrated (65%) industry are the largest contributors to dollar-level earnings growth. If these industries are removed the growth rate declines to 32% Thomson Reuters. All marks herein are used under license. TRPR_82221_97 4

5 The Materials sector has the second highest earnings growth rate (32.1%) of all ten sectors. It is predicted to earn $7.8B in Q3 2011, relative to earnings of $5.9B in Q Ten of the 12 industries in the sector expect to see an improvement in earnings compared to the year-ago quarter. Of these ten industries, the Steel (735%) industry, and Fertilizer & Agricultural Chemicals (130%) industries are reporting the highest percentages of growth. If these industries are removed the growth rate declines to 12%. The Utilities sector has the lowest growth rate (1.8%) of any sector. It is projected to earn $10.4B in Q3 2011, relative to earnings of $10.2B in Q Two of the four industries in the sector expect earnings to decline compared to Q The Independent Power Production (-2%) industry and the Gas Utilities (-2%) are the largest contributors to the decrease in earnings. If these industries are removed the growth number remains unchanged at 2.0%. Q3 2011: REVENUE GROWTH RATES Exhibit 6A. S&P 500: Q Revenue Growth Revenue $B Revenue $B Growth $B Growth % Sector Q311 Q310 Q311 Q311 Consumer Discretionary % Consumer Staples % Energy % Financials % Health Care % Industrials % Materials % Technology % Telecom Services % Utilities % S&P % The estimated revenue growth rate for the S&P 500 for Q is 11%. The S&P 500 is expecting revenues of $2,471B in Q compared to $2,225B in Q All ten sectors anticipate revenue growth for the quarter. The Energy and Materials have the highest revenue growth rates for the quarter, while Telecommunications and Utilities have the lowest. The Energy sector has the highest revenue growth rate (26%) for the quarter. It is projected to generate sales of $399.6B in Q3 2011, compared to sales of $315.9B in Q Six of the seven industries in the sector are predicted to see sales growth, led by the Oil and Gas Refining and Marketing (46%), Oil and Gas Consumer Fuels (39%), and Oil and Gas Equipment and Services (36%) industries. The Materials sector has the second highest revenue growth rate at 15%. The sector is expected to generate sales of $95.7B in Q3 2011, relative to sales of $82.8B in Q Eleven of the 12 industries in the sector are predicted to see revenue growth for the quarter. Seven of these 12 industries are expecting double-digit growth, led by the Chemicals Agriculture and Fertilizer (33%) and the Steel (22%) industries Thomson Reuters. All marks herein are used under license. TRPR_82221_97 5

6 Q4 2011: EARNINGS GUIDANCE Exhibit 7A. S&P 500: Q Preannouncements Q Q Q Type Total (#) Total (%) Total (#) Total (%) Total (#) Total (%) Positive 23 21% 38 33% 28 28% In-Line 5 5% 11 10% 7 7% Negative 81 74% 66 57% 66 65% Total N/P Ratio In the S&P 500, there have been 81 negative EPS preannouncements issued by corporations for Q compared to 23 positive EPS preannouncements. By dividing 81 by 23, one arrives at an N/P ratio of 3.5 for the S&P 500 Index. This 3.5 ratio is above the N/P ratio at the same point in time in Q (1.7), and above the long-term aggregate (since 1995) N/P ratio for the S&P 500 (2.3). The 3.5 ratio is the largest showing since the 3.7 ratio in Q2 2001, in the midst of the 2001 recession. Q32011 Q1 2012: FORWARD FOUR-QUARTER P/E RATIO Exhibit 8A. S&P 500: Forward Four-Quarter (Q Q1 2012) P/E Ratio Price EPS P/E Ratio CY Forward 4 Quarter CY The forward four-quarter (Q Q2 2012) P/E ratio for the S&P 500 is Q Q2 2012: EARNINGS GROWTH The estimated earnings growth rates for the S&P 500 for Q through Q are 18%, 10%, 7% and 11%, respectively. For sector-level growth rates for Q through Q2 2012, see pages in this report. EARNINGS CALENDAR The next few weeks will see companies report earnings for Q There are 8 S&P 500 companies scheduled to report Q earnings during the week of November 21. Exhibit 9A. Number of Companies Reporting Q Earnings Reported Report Report Report Q To Date This Week Next Week Remaining Dow S&P Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 6

7 STARMINE EARNINGS SURPRISE FORECAST Q Looking forward to anticipated Q3 performance, we use StarMine s SmartEstimate to determine which companies in the S&P 500 are better poised to beat earnings guidance. The SmartEstimate is a weighted average of analyst estimates, with more weight given to more recent estimates and more accurate analysts. Our studies have shown that when the SmartEstimate differs from the consensus (IBES Mean) by more than 2%, the company is likely to post subsequent earnings surprises directionally correct 70% of the time. During the week of November 21, 8 S&P 500 companies are expected to report earnings. Of these companies, a positive surprise is expected from Tyson Foods. Tyson Foods is expected to benefit from increasing chicken prices. Exhibit 10A. Positive Predicted Surprises for Q3 2011, week of November 21, 2011 Company Ticker SmartEstimate Mean Predicted Surprise Predicted Surprise % Tyson Foods Inc TSN % Source: Thomson Reuters StarMine Professional Thomson Reuters. All marks herein are used under license. TRPR_82221_97 7

8 SECTION B: EARNINGS CALENDAR MONDAY: NOVEMBER 21 Exhibit 1B. Monday Earnings Calendar Date Ticker Company Qtr Est Yr Ago % Dif Time 21-Nov-11 TSN TYSON FOODS INC Q4-Sep N/AV 21-Nov-11 HPQ HEWLETT PACKARD CO Q4-Oct :00PM 21-Nov-11 ADI ANALOG DEVICES INC Q4-Oct :00PM 21-Nov-11 TSN TYSON FOODS INC Q4-Sep N/AV Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 8

9 TUESDAY: NOVEMBER 22 Exhibit 2B. Tuesday Earnings Calendar Date Ticker Company Qtr Est Yr Ago % Dif Time 22-Nov-11 PDCO PATTERSON COMPANIES INC Q2-Oct :30AM 22-Nov-11 CPB CAMPBELL SOUP COMPANY Q1-Oct :30AM 22-Nov-11 HRL HORMEL FOODS CORPORATION Q4-Oct :30AM 22-Nov-11 MDT MEDTRONIC INC Q2-Oct :30AM Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 9

10 WEDNESDAY: NOVEMBER 23 Exhibit 3B. Wednesday Earnings Calendar Date Ticker Company Qtr Est Yr Ago % Dif Time 23-Nov-11 DE DEERE & COMPANY Q4-Oct N/AV Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 10

11 THURSDAY: NOVEMBER 24 Exhibit 4B. Thursday Earnings Calendar Date Ticker Company Qtr Est Yr Ago % Dif Time Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 11

12 FRIDAY: NOVEMBER 25 Exhibit 5B. Friday Earnings Calendar Date Ticker Company Qtr Est Yr Ago % Dif Time Source: Thomson Reuters StreetEvents Thomson Reuters. All marks herein are used under license. TRPR_82221_97 12

13 SECTION C: EARNINGS DATA TABLES Exhibit 1C. S&P 500: Q Earnings Scorecard Sector Above Match Below Surprise Reported Index Consumer Discretionary 65% 11% 24% 3.2% Consumer Staples 68% 11% 22% 1.8% Energy 67% 7% 26% 7% Financials 62% 8% 30% 15.7% Health Care 82% 10% 8% 5% Industrials 79% 14% 7% 4.8% Materials 68% 6% 26% 4% Technology 75% 14% 11% 3.1% Telecom 38% 12% 50% 8.1% 8 8 Utilities 76% 6% 18% 3.3% S&P % 10% 20% 6% Exhibit 2C. S&P 500: Q Earnings Growth Sector Today 3 Oct 1 Jul 1 Apr 3 Jan Consumer Discretionary 21.8% 19.1% 20.0% 21.7% 21.4% Consumer Staples 9.6% 7.9% 11.2% 10.8% 10.2% Energy 58.9% 48.5% 54.9% 40.9% 23.5% Financials 12.4% 3.9% 15.6% 18.4% 20.3% Health Care 9.4% 4.1% 4.4% 4.7% 4.7% Industrials 20.5% 15.2% 18.0% 15.9% 13.2% Materials 32.1% 35.1% 42.7% 40.0% 28.8% Technology 9.5% 8.5% 8.6% 8.8% 4.5% Telecom 15.6% 7.0% 13.4% 13.1% 21.2% Utilities 1.8% -2.6% -1.5% -4.3% -5.6% S&P % 13.1% 17.0% 15.7% 12.6% Exhibit 3C. S&P 500: Q Earnings Growth Sector Today 3 Oct 1 Jul 1 Apr 3 Jan Consumer Discretionary 8.3% 13.6% 14.4% 15.6% 18.6% Consumer Staples 5.2% 7.6% 9.2% 8.5% 11.7% Energy 23.3% 28.8% 32.7% 22.0% 20.2% Financials 18.6% 26.6% 36.6% 39.5% 27.5% Health Care 4.4% 6.4% 6.8% 7.4% 13.1% Industrials 11.2% 14.0% 16.7% 14.7% 22.5% Materials -0.3% 25.6% 26.2% 25.3% 32.4% Technology 8.9% 9.7% 9.4% 8.8% 12.2% Telecom -4.6% 5.0% 14.5% 16.5% 22.4% Utilities -4.2% 3.6% 0.8% 2.8% 9.9% S&P % 15.0% 17.6% 16.5% 17.9% 2011 Thomson Reuters. All marks herein are used under license. TRPR_82221_97 13

14 Exhibit 4C. S&P 500: Q Earnings Growth Sector Today 3 Oct 1 Jul 1 Apr Consumer Discretionary 8.1% 10.5% 12.8% 15.6% Consumer Staples 7.5% 8.0% 10.0% 10.6% Energy 8.8% 16.9% 17.6% 19.6% Financials 9.0% 15.0% 23.7% 27.2% Health Care 3.0% 2.4% 2.5% 6.5% Industrials 14.2% 15.9% 18.3% 22.5% Materials 2.1% 14.6% 19.9% 27.0% Technology 6.0% 7.8% 7.5% 13.0% Telecom -0.5% 7.0% 15.2% 18.4% Utilities -6.5% -6.7% -6.2% -3.4% S&P % 10.2% 12.8% 16.3% Exhibit 5C. S&P 500: Q Earnings Growth Sector Today 3 Oct 1 Jul Consumer Discretionary 7.4% 8.7% 16.2% Consumer Staples 7.1% 7.6% 11.0% Energy -4.5% 3.7% 7.0% Financials 79.2% 90.0% 65.7% Health Care 3.2% 3.0% 5.8% Industrials 10.9% 12.8% 20.0% Materials 4.3% 15.2% 18.4% Technology 5.8% 6.4% 15.2% Telecom -3.4% 1.2% 13.3% Utilities -12.5% -14.0% -2.6% S&P % 14.3% 18.6% Exhibit 6C. S&P 500: Q Earnings Growth Sector Today 3 Oct Consumer Discretionary 13.6% 16.1% Consumer Staples 8.7% 10.5% Energy -3.0% 13.3% Financials 11.1% 26.7% Health Care 2.3% 4.9% Industrials 11.2% 17.9% Materials 14.2% 20.9% Technology 11.9% 15.4% Telecom 2.5% 11.2% Utilities -3.9% 0.2% S&P % 14.7% 2011 Thomson Reuters. All marks herein are used under license. TRPR_82221_97 14

15 Exhibit 7C. S&P 500: CY 2011 Earnings Growth Sector Today 3 Oct 1 Jul 1 Apr 3 Jan Consumer Discretionary 14.7% 15.6% 14.6% 14.7% 15.4% Consumer Staples 9.1% 9.5% 9.9% 9.4% 10.8% Energy 37.1% 36.8% 38.6% 25.6% 14.2% Financials 3.8% 2.1% 11.7% 22.1% 20.6% Health Care 7.6% 6.8% 5.8% 4.4% 7.1% Industrials 20.6% 20.1% 19.7% 16.6% 17.9% Materials 34.2% 42.9% 40.8% 34.9% 30.8% Technology 17.5% 16.6% 13.7% 11.9% 9.5% Telecom 2.1% 0.6% 6.5% 6.2% 13.2% Utilities -0.8% -1.7% -2.2% -1.8% -0.6% S&P % 14.4% 15.5% 14.6% 13.4% Exhibit 8C. S&P 500: CY 2012 Earnings Growth Sector Today 3 Oct 1 Jul 1 Apr 3 Jan Consumer Discretionary 13.5% 14.1% 16.4% 16.2% NA Consumer Staples 9.1% 9.5% 10.1% 10.3% NA Energy 2.8% 8.1% 10.2% 13.7% NA Financials 22.6% 31.2% 29.4% 20.5% NA Health Care 4.8% 5.5% 6.1% 6.5% NA Industrials 13.5% 15.5% 18.4% 18.2% NA Materials 11.1% 12.9% 13.6% 15.3% NA Technology 9.6% 10.4% 11.9% 12.2% NA Telecom 7.9% 14.0% 14.2% 14.7% NA Utilities -1.8% -0.4% 0.3% -0.6% NA S&P % 13.2% 14.3% 13.6% NA Exhibit 9C. S&P 500: Bottoms-Up EPS Actuals and Estimates Year Q1 Q2 Q3 Q4 CY Thomson Reuters. All marks herein are used under license. TRPR_82221_97 15

16 Exhibit 10C. S&P 500: Actual Earnings Growth Rates Sector 2Q11 1Q11 4Q10 3Q10 2Q10 Consumer Disc. 17.2% 15.6% 16.4% 24.2% 67.3% Consumer Staples 12.8% 9.7% 4.4% 4.1% 7.6% Energy 38.5% 36.3% 36.9% 32.3% 91.9% Financials -28.7% 7.8% % 94.3% 37.4% Health Care 7.6% 10.1% 10.3% 8.6% 13.6% Industrials 20.1% 35.3% 22.6% 51.4% 26.8% Materials 50.0% 52.1% 49.4% 41.4% 111.0% Technology 23.6% 27.0% 23.2% 42.2% 66.6% Telecom 4.1% -0.2% 12.7% -9.1% 1.5% Utilities 8.8% -1.3% -4.5% 9.4% 3.9% S&P % 18.9% 37.2% 31.2% 38.8% Exhibit 11C. S&P 500: Actual vs. Estimate (Above/Match/Below) 2Q11 1Q11 4Q10 3Q10 2Q10 Above 71% 69% 70% 72% 75% Match 10% 11% 9% 9% 9% Below 19% 20% 21% 18% 15% Exhibit 12C. S&P 500: Actual vs. Estimate (Aggregate Difference) 2Q11 1Q11 4Q10 3Q10 2Q10 Surprise Factor 6.2% 6.4% 6.0% 6.6% 9.7% 2011 Thomson Reuters. All marks herein are used under license. TRPR_82221_97 16

17 NOTES / DEFINITIONS ABOUT THOMSON ONE Thomson ONE Investment Management is a real-time research and portfolio management solution that delivers a broad and deep range of global financial content and insight. You get direct, unfiltered access to industry-leading sources of financial information and analytics, all in a fully integrated workspace designed to help you better analyze your investable universe and monitor your holdings. In a single application, you can: access broker research, estimates, financials, events, news, fixed income and credit analysis, and more; conduct in-depth portfolio analysis versus indices, sectors, and industries; investigate data aggregates and complex data relationships; broaden your understanding of the credit markets; monitor negative developments and uncover new investment ideas. We also provide effortless integration of our content into your proprietary spreadsheets, and allow you to stay connected to critical portfolio information on your BlackBerry. ABOUT THOMSON REUTERS Thomson Reuters is the world s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world s most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people in 93 countries. Thomson Reuters shares are listed on the New York Stock Exchange (NYSE: TRI) and Toronto Stock Exchange (TSX: TRI). For more information, go to IMPORTANT NOTICE This disclaimer is in addition to and not in replacement of any disclaimer of warranties and liabilities set forth in a written agreement between Thomson Reuters and you or the party authorizing your access to the Service ( Contract Disclaimer ). In the event of a conflict or inconsistency between this disclaimer and the Contract Disclaimer the terms of the Contract Disclaimer shall control. By accessing these materials, you hereby agree to the following: These research reports and the information contained therein is for your internal use only and redistribution of this information is expressly prohibited. These reports including the information and analysis, any opinion or recommendation is not intended for investment purposes and does not constitute investment advice or an offer, or an invitation to make an offer, to buy or sell any securities or any derivatives related to such securities. Thomson Reuters does not warrant the accuracy of the reports for any particular purpose and expressly disclaims any warranties of merchantability or fitness for a particular purpose; nor does Thomson Reuters guarantee the accuracy, validity, timeliness or completeness of any information or data included in these reports for any particular purpose. Thomson Reuters is under no obligation to provide you with any current or corrected information. Neither Thomson Reuters nor any of its affiliates, directors, officers or employees, will be liable or have any responsibility of any kind for any loss or damage (whether direct, indirect, consequential, or any other damages of any kind even if Thomson Reuters was advised of the possibility thereof) that you incur in connection with, relating to or arising out of these materials or the analysis, views, recommendations, opinions or information contained therein, or from any other cause relating to your access to, inability to access, or use of these materials, whether or not the circumstances giving rise to such cause may have been within the control of Thomson Reuters. The information provided in these materials is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Thomson Reuters or its affiliates to any registration requirement within such jurisdiction or country Thomson Reuters. All marks herein are used under license. TRPR_82221_97 17