Estimates for Q2

With second quarter earnings season about to begin, here are the EPS growth and sales growth estimates from S&P:

Sector EPS Growth Sales Growth
Energy 81.61% 36.47%
Materials 91.38% 16.75%
Industrials 7.97% 4.73%
Discretionary 46.00% 3.68%
Staples 1.78% 3.26%
Health Care 12.11% 12.74%
Financials 251.57% -23.12%
Technology 62.86% 16.47%
Telecom 213.57% -0.52%
Utilities 6.79% 7.43%
S&P 500 42.49% 5.51%

The good news is that earnings are growing faster than sales. The means that profit margins are expanding. The warning sign is that margin-expansion can’t continue forever. At some point, sales growth needs to pick up.

Posted by on July 10th, 2010 at 9:13 pm


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