Corporate Earnings And Profit Margin Statistics

Today, Bloomberg published an article titled “Profits at $1 Trillion Meet Valuations as S&P500 Rallies.”  The article contains a variety of statistics, including those concerning earnings, valuations, and profit margins.

Notable excerpts include:

The Standard & Poor’s 500 Index is 5.1 percent below the all-time high in October 2007. Profits in the benchmark gauge are forecast to exceed $1 trillion this year, or 31 percent more than when the gauge peaked, according to more than 11,000 analyst estimates compiled by Bloomberg.

also:

Analysts predict S&P 500 earnings from 3M Co. to Walt Disney Co. (DIS) and United Parcel Service Inc. will rise 8 percent this year to a record $110.10 a share, according to estimates compiled by Bloomberg.

also:

Earnings have bounced back faster than the economy as executives focused on cutting costs and took advantage of record-low borrowing rates. Corporate profits in the 12 months ended July 1 represented about 11 percent of U.S. gross domestic product, according to data compiled by the Federal Reserve. That’s the highest since the data began in 1947 and compares with 9.2 percent in 2007.

also:

Profit margins climbed to 9.1 percent in September 2011, the highest level in at least 18 years, according to data compiled by Bloomberg on non-financial companies in the S&P 500. While the expansion helped boost earnings amid the slowest recovery from a recession since World War II, it’s unlikely to continue to push earnings higher, Tanious said.

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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 is a management consulting firm and strategic advisory that focuses on the analysis of current and future weak(ening) economic conditions, and offers businesses and other entities advice, strategies, and actionable methods on how to optimally adapt to such challenging, complex conditions.