Individual Investors

Insights

Q3 S&P 500 Earnings Update

11/07/2014

As of the close of business on Thursday, November 6, 444 of the S&P 500® Index (SPX) companies had reported earnings for the third quarter, continuing to show strong results. What is particularly striking and worth emphasizing is the expanding margins we are seeing from many companies. That story tends to get overlooked by the business media as it is not as exciting as reporting on companies that miss earnings. Yet, it is these very earnings, along with corporate activity, which stabilized the markets in the second half of October.

CQ3 2014 SPX Earnings

Other SPX Metrics

  • CQ3 Profit Margin 9.65% versus CQ2 9.43%
  • CQ3 Gross Margin 32.29% versus CQ2 32.08%
  • CQ3 EBITDA Margin 19.39% versus CQ2 19.18%
  • CQ3 Operating Margin 14.13% versus CQ2 13.87%
  • CQ3 Earnings $29.86 versus CQ2 $28.92
  • CY 2013 SPX earnings per share $106.66
  • CY 2014 SPX current earnings per share $113.16
  • CY 2014 SPX estimated earnings per share $120.31

Mergers & Acquisitions, year to date as of November 6, 2014

  • Global M&A                  $3.6 trillion        +59% year on year
  • North America M&A       $1.8 trillion        +69% year on year
  • European M&A              $992 billion       +65% year on year
  • Asia Pacific M&A          $633 billion       +37% year on year
  • Latin America M&A        $140 billion       +62% year on year

Looking Ahead

  • Next week, 15 more SPX companies will report: 2 on Tuesday, 5 on Wednesday, 7 on Thursday, and 1 on Friday
  • Industry breakdown:
    • Industrials:  3 (ROK, ADT, TYC)
    • Energy:  1 (HP)
    • Consumer Staples:  2 (DHI, FOSL)
    • Utilities:  1 (GAS)
    • Technology:  3 (CSCO, NTAP, AMAT)
    • Consumer Discretionary:  5 (M, KSS, WMT, JWN, VIAB)

Past performance is not a guarantee of future results.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.