S&P 500 Sector Earnings
A few quick graphs today, click to enlarge them. They are all S&P 500 operating earnings, which along with reported earnings are available here. I’m yet to figure out why the sectors sum to greater than the whole, so if you know the reason, please share.
“Operating earnings exclude write-offs, while reported earnings include write-offs. That is the only difference, but it’s a difference that is getting much more important. As recently as the early 1990s, operating and reported earnings were virtually the same. But then we entered the greatest financial mania of all time, and the earnings numbers diverged.” via Barron’s What’s the Real P/E Ratio?
Zooming in on a few key sectors. Most market commentators are quick to point out that S&P earnings are unlikely to hit new highs for sometime due to the peak debt financed earnings of the middle of this decade. However, looking at the sector earnings below, if a recovery does unfold and oil heads higher then there is an outside chance that S&P earnings could hit new highs considerably sooner than expected.
![S&P 500 Select Sectors Operating Earnings Chart [Click to Enlarge]](http://www.fusioninvesting.com/wp-content/uploads/2009/10/sp500-select-sectors.png "S&P 500 Select Sectors Operating Earnings Chart [Click to Enlarge]")
How about growth? S&P certainly see strong growth in 2010. As Toro reported last week the ECRI Leading Index also suggests strong growth.
![S&P 500 Annual Growth operating earnings [Click to Enlarge]](http://www.fusioninvesting.com/wp-content/uploads/2009/10/sp500-annual-growth-earnings.png "S&P 500 Annual Growth operating earnings [Click to Enlarge]")
Due to the huge volatility in Financials, Energy, Materials and Consumer Discretionary the growth in the other sectors is difficult to see in that chart. So here is the underlying data.
| Annual Growth | 2008 | 2009 | 2010 |
|---|---|---|---|
| S&P 500 | -40% | 11% | 34% |
| S&P 500 Consumer Discretionary | -60% | 64% | 58% |
| S&P 500 Consumer Staples | 10% | 3% | 10% |
| S&P 500 Energy | 10% | -67% | 89% |
| S&P 500 Financials | -193% | -124% | 130% |
| S&P 500 Health Care | 5% | 8% | 10% |
| S&P 500 Industrials | -1% | -34% | 8% |
| S&P 500 Information Technology | -7% | -3% | 32% |
| S&P 500 Materials | -49% | -34% | 99% |
| S&P 500 Telecommunication Services | -1% | -4% | 3% |
| S&P 500 Utilities | 5% | -5% | 10% |
Related posts:
Leave your response!