S&P Industry Briefing: S&P Excluding IT November, 17 Dr. Ed Yardeni 16-97-7683 eyardeni@ Joe Abbott 73-97-36 jabbott@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents S&P ex-tech Forward Earnings & Revenues 1 S&P ex-tech Margin & Valuation S&P ex-tech NERI 3 S&P ex-tech Forward Earnings & Revenues November, 17 / S&P Excluding Information Technology www.
1 1 1 8 6 S&P ex-tech Forward Earnings & Revenues Figure 1. AGGREGATE FORWARD EARNINGS* (ratio scale, billion dollars) 1 1 1 8 6 S&P (1.) Information Technology (87.) S&P ex-information Technology (937.) 199 1996 1997 1998 1999 1 3 6 7 8 9 1 11 1 13 1 1 16 17 18 19 * Time-weighted average of the consensus estimates for current and next year. Monthly through December, weekly thereafter. 16 16 16 Figure. AGGREGATE FORWARD REVENUES* (ratio scale, billion dollars) 16 16 16 86 86 66 66 6 S&P (111.3) Information Technology (1363.6) S&P ex-information Technology (967.8) 6 6 6 6 6 7 8 9 1 11 1 13 1 1 16 17 18 19 6 * Time-weighted average of the consensus estimates for current and next year. Monthly through December, weekly thereafter. Page 1 / November, 17 / S&P Excluding Information Technology www.
Figure 3. S&P ex-tech Margin & Valuation FORWARD PROFIT MARGIN* (percent) 16 1 S&P (11.1) S&P Information Technology (1.) S&P ex-information Technology (9.7) 16 1 8 8 6 7 8 9 1 11 1 13 1 1 16 17 18 19 * Using consensus forward revenues and earnings forecasts. Monthly through December, weekly thereafter. 3 3 1 1 Figure. FORWARD P/E RATIO* S&P (18.) S&P Information Technology (18.8) S&P ex-information Technology (17.7) 3 3 1 1 3 P/E Difference Attributable To Information Technology (.3) 3 1-1 199 1996 1997 1998 1999 1 3 6 7 8 9 1 11 1 13 1 1 16 17 18 19 1-1 * Price divided by consensus forward earnings forecast. Monthly through December, weekly thereafter. Page / November, 17 / S&P Excluding Information Technology www.
3 Figure. NET REVISIONS* (% estimates up less down) S&P ex-tech NERI 3 1 Nov 1-1 - -3 - - S&P (.6) S&P IT(16.9) S&P ex-it (-.3) -1 - -3 - - Nov - - - -6 S&P NERI Points Attributable To Information Technology(.9) 199 1996 1997 1998 1999 1 3 6 7 8 9 1 11 1 13 1 1 16 17 18 19 - -6 * Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Page 3 / November, 17 / S&P Excluding Information Technology www.
7 S&P ex-tech Forward Earnings & Revenues Figure 6. FORWARD EARNINGS* (yearly percent change) 7 - - - -7 S&P (9.3) S&P Information Technology (19.7) S&P ex-information Technology (6.8) 199 1996 1997 1998 1999 1 3 6 7 8 9 1 11 1 13 1 1 16 17 18 19 - -7 * Using consensus forward earnings forecasts. Monthly through December, weekly thereafter. Figure 7. FORWARD REVENUES* (yearly percent change) 3 S&P (6.) Information Technology (1.6) S&P ex-information Technology (.) 3 1 1-1 -1-6 7 8 9 1 11 1 13 1 1 16 17 18 19 - * Time-weighted average of the consensus estimates for current and next year. Monthly through December, weekly thereafter. Page / November, 17 / S&P Excluding Information Technology www.
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