{"id":4291,"date":"2014-11-08T22:45:31","date_gmt":"2014-11-08T22:45:31","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=4291"},"modified":"2014-11-08T22:45:31","modified_gmt":"2014-11-08T22:45:31","slug":"11-8-14-sp-500-revenue-growth-3rd-and-4th-quarters","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=4291","title":{"rendered":"11.8.14: SP 500 Revenue Growth, 3rd and 4th Quarters"},"content":{"rendered":"<p>We occasionally post an update to SP 500 revenue growth, which we\u00a0are doing tonight\u00a0again\u00a0here (<a href=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/2014\/11\/FCSP500revgroqtrly.xls\">FCSP500revgro(qtrly)<\/a>).<\/p>\n<p>As you can see SP 500 revenue growth for q3 &#8217;14 is coming in slightly better for the 3rd quarter with almost 80% of the SP 500 having reported their 3rd quarter, 2014 results.<\/p>\n<p>The two sectors with upside in terms of revenue growth are Healthcare (no surprise, a lot of which is biotech), and Technology.<\/p>\n<p>In terms of the 4th quarter expectations, Thomson Reuters doesn&#8217;t give any look forward for revenues as they do with earnings, but Factset does, so here is what Factset is showing for the changes in\u00a0q4 &#8217;14 revenue expectations, from Sept 30th to Friday, November 7th (first column of data), as ranked from highest to lowest expected revenue growth:<\/p>\n<p>Health Care: +9.2%, vs the +8.8% expected of 9\/30\/14<\/p>\n<p>Technology: +6%, vs +7.2%<\/p>\n<p>Telecom: +4%, vs +4.2%<\/p>\n<p>Consumer Disc: +3.5%, vs +4.7%<\/p>\n<p>Consumer Spls: +3.2%, vs +3.8%<\/p>\n<p>Industrials: +2.8%, +3.3%<\/p>\n<p>Ute&#8217;s: +2.5%, vs +0.8%<\/p>\n<p>Fincl&#8217;s: +2.3%, +2.9%<\/p>\n<p><em><strong>SP 500: +2.2%, vs +3.8%<\/strong><\/em><\/p>\n<p>Basic Materials: -0.6%, vs +1.9%<\/p>\n<p>Energy: -9%, vs. -1.7%<\/p>\n<p>Only Healthcare has seen upward revisions to revenue estimates for q4 &#8217;14. What a shocker that Basic Materials and Energy are at the bottom of the list. Every sector besides Healthcare has seen revenue growth estimates decline for q4 &#8217;14.<\/p>\n<p>My guess is, as was the case with yesterday&#8217;s Weekly Earnings Update, (see November 7th post), is that Energy is having a significant drag on\u00a0q4 &#8217;14 SP 500\u00a0revenue estimates as well, not just SP 500 earnings estimates.<\/p>\n<p>The expected revenue decline of 9% within the Energy sector for q4 &#8217;14 as of this weekend, is 400% greater than the expected revenue decline as of September 30th&#8217;s expected -1.7% and it could still get worse.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We occasionally post an update to SP 500 revenue growth, which we\u00a0are doing tonight\u00a0again\u00a0here (FCSP500revgro(qtrly)). As you can see SP&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,114],"tags":[],"class_list":["post-4291","post","type-post","status-publish","format-standard","hentry","category-sp-500","category-sp-500-revenue-growth"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4291"}],"version-history":[{"count":5,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4291\/revisions"}],"predecessor-version":[{"id":4297,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/4291\/revisions\/4297"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}