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May 07 2019

Signs Of Margin Pressure Ahead

  • May 7, 2019

Banks’ lending standards for C&I loans (typically to large businesses) tightened quite a bit in Q1, which bodes ill for both investment and overall economic growth going forward.

Nov 30 2018

What Can Margins Do For An Encore?

  • Nov 30, 2018

A massive drop in corporate tax payments lifted the third quarter NIPA profit margin back to the 10% level for the first time four years. But while we try not to always view the glass as half empty, we find it troubling that margins remain well-below their 2012 highs (10.6%) in spite of this one-time windfall.


Sep 08 2017

Sector Margin Checkup

  • Sep 8, 2017

U.S. companies hoping for a reduction in the corporate tax rate are not exactly doing a convincing job of demonstrating “need.”

Apr 07 2014

Profit Margins At The Sector Level

  • Apr 7, 2014

All ten of the S&P 500 sectors recorded a sequential increase in four-quarter trailing net profit margins. But consider where sector margins stand today relative to their 25-year medians. Eight of ten S&P 500 sectors are recording profit margins well above their long-term medians.

Dec 06 2013

Earning Momentum

  • Dec 6, 2013

While the current ratio of 1.37 is relatively weak historically, it is still an improvement from the second months’ readings of Q2 (1.27) and Q1 (1.16).

Dec 06 2013

The Mundane Truth Behind Margins

  • Dec 6, 2013

The margin expansion story of the last 20 years is a financial one, not an operating one.

Oct 08 2013

Earnings Momentum - Q2 Reports Below Average But Ahead Of Q1

  • Oct 8, 2013

With all three months of Q2 earnings reports in, the 1.28 ratio is much stronger than Q1, but remains below the 1.51 historical average ratio.

Sep 10 2013

Q2 Median Company Earnings Growth Rates Vary Drastically Across Cap Size

  • Sep 10, 2013

EPS growth for Large and Mid Cap companies continues exceeding their top-line growth, but Small and Micro Cap companies saw their EPS growth rates coming in below their top-line growth rates.

Sep 10 2013

Q2 Median Revenue Comparisons: Higher Growth Across All Segments

  • Sep 10, 2013

Large Cap result this month is the same as last month, but remains stronger than Q1. Smaller firms reversed course, as Mid, Small, and Micro Caps all rebounded with large sales momentum increases.

Aug 07 2013

Q2 Median Company Earnings: Growth Rates Volatile But Positive In General

  • Aug 7, 2013

EPS growth rates are coming in higher than expected. While sales growth remains muted, the ability of companies to do more with less and maintain high operating margins is impressive. Margins are determined at the discretion of management and are thus sticky and unlikely to drop off significantly unless wage pressures resume and slack capacity around the globe is absorbed.

Aug 07 2013

Q2 Median Revenue Comparisons: Higher Growth In Large And Mid Caps

  • Aug 7, 2013

Q2 relative to Q1 growth rates have improved for larger cap companies but deteriorated for the smaller firms.

Aug 07 2012

The Risks Of Record Margins…

  • Aug 7, 2012

While the big S&P companies’ EPS have held up, our earnings breadth work has not held up as well. Part of this development can be traced back to February 2011’s “Point of Recognition.”


Feb 05 2012

Global Perspective On 2012 Earnings, Sales, and Margins

  • Feb 5, 2012

Leuthold’s Eric Weigel dissects earnings, sales and margin expectations for the coming year.


Mar 04 2011

Digging Deeper With Group Level Data

  • Mar 4, 2011

This month’s “Quantitative Strategies” section presents a preliminary look at some long term trends in Valuations and Profit Margins for specific industry groups.