Stock Market Briefing: S&P Sectors & Industries Profit Margins December 1, 1 Dr. Edward Yardeni 1--3 eyardeni@ Joe Abbott 3--3 jabbott@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents S&P Operating Profit Margins S&P Profit Margin 3- S&P Sectors Operating Profit Margins S&P Sectors Forecasted & Actual Profit Margins Consumer Discretionary - Consumer Staples Energy Health Care Industrials Information Technology 11 Materials Materials & Telecommunication Services 13 December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 1. S&P PROFIT MARGIN (percent, quarterly) S&P Profit Margin 3 3-3 -3 - Operating (.) Reported (.) - - - - 1 3 11 13 1 1 1 1 1 1 Source: Standard & Poor s Corporation (revenues and reported EPS) and Thomson Reuters I/B/E/S (operating EPS). - 11 Figure. S&P PROFIT MARGIN (percent, trailing four-quarter average) 11 3 Operating (.) Reported (.) 3 1 1 1 3 11 13 1 1 1 1 1 1 Source: Standard & Poor s Corporation (revenues and reported EPS) and Thomson Reuters I/B/E/S (operating EPS). Page 3 / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 3. S&P OPERATING PROFIT MARGIN (percent) S&P Profit Margin Quarterly (.) Trailing four-quarter average (.) 1 3 11 13 1 1 1 1 1 1 Source: Standard & Poor s Corporation. 1 Figure. S&P REPORTED PROFIT MARGIN (percent) 1 - Quarterly (.) Trailing four-quarter average (.) - - - -1 3 1 3 11 13 1 1 1 1 1 1 Source: Standard & Poor s Corporation and Thomson Reuters I/B/E/S and Bureau of Economic Analysis. -1 Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
S&P Profit Margin Figure. S&P PROFIT MARGIN 1 (percent, using analysts average earnings and revenues forecasts) 1 1 11 /1 11 Consensus Forecasts Annual -week forward* 11 13 1 1 1 1 1 1 * Time-weighted average of the consensus estimates for current and next year. Monthly through December, weekly thereafter. Source: Thomson Reuters I/B/E/S. and Standard & Poor s. Figure. Task: SPPROFMARGIN Invalid calculation element [QSALES] -1-1 - 3:: Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
11 Figure. S&P & PROFIT MARGIN S&P index (.) Operating trailing -quarter profit margin (.) S&P Profit Margin /13 1 1 1 3 1 3 11 13 1 1 1 1 1 1 Source: Standard & Poor s Corporation and Thomson Reuters I/B/E/S. Figure. S&P & FORWARD PROFIT MARGIN /13 11 S&P index (.) Forward profit margin (11.1) /1 1 1 11 13 1 1 1 1 1 1 * Time-weighted average of the consensus estimates for current and next year. Monthly through December, weekly thereafter. Source: Standard & Poor s Corporation and Thomson Reuters I/B/E/S. Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
S&P Sectors Operating Profit Margins Figure. CONSUMER DISCRETIONARY (.) 1 3 11 13 1 1 1 INDUSTRIALS (.) 1 3 11 13 1 1 1 CONSUMER STAPLES (.) 1 3 11 13 1 1 1 INFORMATION TECHNOLOGY (1.) 1 3 11 13 1 1 1 1 - - ENERGY (3.) 1 3 11 13 1 1 1 MATERIALS (.) 1 3 11 13 1 1 1 1 1 1 FINANCIALS Includes Real Estate through Q-1 (13.) 1 3 11 13 1 1 1 TELECOMMUNICATION SERVICES (.) 1 3 11 13 1 1 1 1 1 1 HEALTH CARE UTILITIES (.) 1 3 11 13 1 1 1 (.) 1 3 11 13 1 1 1 * Operating margin in percent and based on trailing -quarter EPS and sales. Source: Standard & Poor s. Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
S&P Sectors Forecasted & Actual Profit Margins Figure. Task: JACCQMAR Task: JACGQMAR Invalid calculation element [QSALESO] Invalid calculation element [QSALESO] -1-1 - 3::1-1-1-3:3:3 Task: JACSQMAR Task: JATEQMAR Invalid calculation element [QSALESO] Invalid calculation element [QSALESO] -1-1 - 3::3-1-1-3:: Task: JAENQMAR Task: JABMQMAR Invalid calculation element [QSALESO] Invalid calculation element [QSALESO] -1-1 - 3:3: -1-1 - 3:3:1 Task: JAFSQMAR Task: JACMQMAR Invalid calculation element [SOE] Invalid calculation element [QSALESO] -1-1 - 3:: -1-1 - 3:: Task: JAHCQMAR Task: JAUTQMAR Invalid calculation element [QSALESO] Invalid calculation element [SOE] -1-1 - 3:: -1-1 - 3:: Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 11. Consumer Discretionary S&P OPERATING PROFIT MARGINS: CONSUMER DISCRETIONARY (trailing -quarter EPS, percent) 1 1 - - Consumer Discretionary Sector (.) Advertising (.) Automobile Manufacturers (.) Auto Parts & Equipment (.) Publishing (.) 1 3 11 13 1 1 1 1 1 1 - - 1 1 1 Figure. S&P OPERATING PROFIT MARGINS: CONSUMER DISCRETIONARY (trailing -quarter EPS, percent) Consumer Discretionary Sector (.) Casinos & Gaming (.) Movies & Entertainment (1.1) Hotels, Resorts & Cruise Lines (.) Restaurants (1.) 1 1 1 1 3 11 13 1 1 1 1 1 1 Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 13. Consumer Discretionary S&P OPERATING PROFIT MARGINS: CONSUMER DISCRETIONARY (trailing -quarter EPS, percent) 3 3 1 Consumer Discretionary Sector (.) Apparel Retail (.) Department Stores (3.) Specialty Stores (.) 1 3 11 13 1 1 1 1 1 1 1 1 Figure 1. S&P OPERATING PROFIT MARGINS: CONSUMER DISCRETIONARY (trailing -quarter EPS, percent) Consumer Discretionary Sector (.) Household Appliances (.3) Homebuilding (.) Computer & Electronics Retail (3.) Home Improvement Retail (.) 1 - Margins capped at -% due to extreme values. 1 3 11 13 1 1 1 1 1 1 - Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
1 Figure 1. Consumer Staples S&P OPERATING PROFIT MARGINS: CONSUMER STAPLES (trailing -quarter EPS, percent) 1 1 1 Consumer Staples Sector (.) Household Products (1.) Packaged Foods & Meats (.) Personal Products (.) 1 3 11 13 1 1 1 1 1 1 3 Figure 1. S&P OPERATING PROFIT MARGINS: CONSUMER STAPLES (trailing -quarter EPS, percent) 3 1 Consumer Staples Sector (.) Brewers (1.) Drug Retail (3.) Soft Drinks (1.) Tobacco (.) 1 1 3 11 13 1 1 1 1 1 1 Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 1. Energy S&P OPERATING PROFIT MARGINS: ENERGY (trailing -quarter EPS, percent) - - - - Energy Sector (3.) Integrated Oil & Gas (.) Oil & Gas Refining & Marketing (.) 1 3 11 13 1 1 1 1 1 1 - - - - 3 3 1 - - -1 - Figure 1. S&P OPERATING PROFIT MARGINS: ENERGY (trailing -quarter EPS, percent) Energy Sector (3.) Oil & Gas Drilling (.) Oil & Gas Equipment & Services (.) Oil & Gas Exploration & Production (-.) 1 3 11 13 1 1 1 1 1 1 3 3 1 - - -1 - Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure 1. Health Care S&P OPERATING PROFIT MARGINS: HEALTH CARE (trailing -quarter EPS, percent) 3 3 3 1 Health Care Sector (.) Biotechnology (3.3) Health Care Equipment (1.) Managed Health Care (.) 3 1 1 3 11 13 1 1 1 1 1 1 3 Figure. S&P OPERATING PROFIT MARGINS: HEALTH CARE (trailing -quarter EPS, percent) 3 1 Health Care Sector (.) Health Care Facilities (.) Pharmaceuticals (.) Health Care Distributors (1.) 1-1 3 11 13 1 1 1 1 1 1 - Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
1 Figure 1. Industrials S&P OPERATING PROFIT MARGINS: INDUSTRIALS (trailing -quarter EPS, percent) 1 Industrials Sector (.) Construction Machinery & Heavy Trucks (.) Industrial Conglomerates (13.) Industrial Machinery (.) 1 3 11 13 1 1 1 1 1 1 11 Figure. S&P OPERATING PROFIT MARGINS: INDUSTRIALS (trailing -quarter EPS, percent) Industrials Sector (.) Aerospace & Defense (.) Electrical Components & Equipment (11.) 11 3 1 3 11 13 1 1 1 1 1 1 3 Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
3 3 Figure 3. Information Technology S&P OPERATING PROFIT MARGINS: INFORMATION TECHNOLOGY (trailing -quarter EPS, percent) 3 3 1 1 Information Technology Sector (1.) Application Software (1.3) Data Processing & Outsourcing (1.) IT Consulting & Other Services (13.) Systems Software (.1) - 1 3 11 13 1 1 1 1 1 1-3 Figure. S&P OPERATING PROFIT MARGINS: INFORMATION TECHNOLOGY (trailing -quarter EPS, percent) Information Technology Sector (1.) Communications Equipment (1.) 3 1 1 - - Semiconductors (.) Semiconductor Equipment (.) 1 3 11 13 1 1 1 1 1 1 - - Page 11 / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
Figure. Materials S&P OPERATING PROFIT MARGINS: MATERIALS (trailing -quarter EPS, percent) - - Materials Sector (.) Aluminum (.) Paper Products (.) Steel (.1) 1 3 11 13 1 1 1 1 1 1 - - Figure. S&P OPERATING PROFIT MARGINS: MATERIALS (trailing -quarter EPS, percent) 1 Materials Sector (.) Diversified Chemicals (.) Fertilizers & Agricultural Chemicals (.) Industrial Gases (1.) Specialty Chemicals (.) 1 1 3 11 13 1 1 1 1 1 1 Page / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
3 1 Figure. Materials & Telecommunication Services S&P OPERATING PROFIT MARGINS: MATERIALS (trailing -quarter EPS, percent) Materials Sector (.) Gold (.) Metal & Glass Containers (.) Diversified Metals & Mining (3.) Paper Packaging (.) 3 1-1 3 11 13 1 1 1 1 1 1-1 1 Figure. S&P OPERATING PROFIT MARGINS: TELECOMMUNICATION SERVICES (trailing -quarter EPS, percent) Telecommunication Services Sector (.) Integrated Telecommunication (11.1) 1 1 1 3 11 13 1 1 1 1 1 1 Page 13 / December 1, 1 / Stock Market Briefing: S&P Sectors & Industries Profit Margins www.
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