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Analysis: U.S. companies in sales struggle as global downturn bites
Sun, Jun 10 09:03 AM EDT
By Caroline Valetkevitch

(Reuters) - U.S. companies are finding it more difficult to grow their revenue 
now than at just about any time since the financial crisis.

Second-quarter revenue growth for companies in the Standard & Poor's 500 index 
(.SPX) is expected to be just 2.2 percent compared with an average 7.3 percent 
quarterly increase since the fourth quarter of 1998, according to Thomson 
Reuters data based on Wall Street analysts' forecasts. Take out the 
supercharged sales of Apple Inc (AAPL.O) and the picture is even weaker - with 
growth of only 1.9 percent for the current period.

The lowered expectations are a result of the euro zone crisis hurting demand 
from Europe, the impact of a slowdown in major developing economies such as 
China, Brazil and India, and recent signs of weakness in the United States.

Just last year, S&P 500 revenue growth was in double-digit territory, at 11.1 
percent in the third quarter following an even bigger 13.6 percent in the 
second quarter. Revenue growth in the first quarter of this year came in at 5 
percent.

Slowing revenue growth has wider implications for the U.S. and global 
economies. Companies are less likely to hire and more likely to fire to curb 
costs so that they can reach their earnings targets. Second-quarter earnings 
expectations for the S&P 500 are for growth of 6.7 percent, and 5.8 percent 
excluding Apple.

While the U.S. economy remains anemic, its relative strength compared with 
Europe, and the lack of a big bright alternative for investment in Asia, may 
provide some protection for the American workforce when any companies do slash 
jobs. The savagery of cuts during the financial crisis also doesn't give many 
companies a lot of slack to take out.

The U.S. manufacturing sector is also stronger than most other parts of the 
economy, with S&P 500 industrials' second-quarter sales expected to be up 6.6 
percent from a year ago. The weakest sectors are energy, expected to see a 12.6 
percent decline in sales in the second quarter, and telecommunications, seen up 
3.2 percent.

"What we were looking for to happen in midyear was for emerging markets and 
Asian growth to bottom out, and that would provide some improvement in revenues 
in the second half," said Barry Knapp, managing director of equity research at 
Barclays Capital in New York.

"That's looking a bit questionable right now. Clearly the biggest trade bloc in 
the world - the euro zone - has not stabilized as of yet. The Asian export 
sector, the weakness you see there, is undoubtedly related to that."

Even technology companies that had benefited from strong demand in Asia are 
feeling the pinch. This week, analysts at JPMorgan Chase lowered their earnings 
estimates and price targets for Google Inc (GOOG.O), online retailer Amazon 
(AMZN.O), and travel web company Priceline.com (PCLN.O), among others.

JPMorgan noted Google will derive more than 50 percent of its 2012 gross 
revenue from international markets. It dropped its revenue estimates for 
Priceline by 3 percent for 2012, noting the company gets 60 percent of its 
bookings from Europe.

"We still expect to see consensus (estimates) move lower for many names as we 
approach 2Q earnings over the next 6 weeks," wrote JPMorgan analyst Doug Anmuth 
in his note.

The trend in overall earnings revisions is not encouraging. The four-week 
moving average of global earnings revisions turned negative for the first time 
since March, according to analysts at Credit Suisse. When that happens, the S&P 
tends to fall 2 percent in the month that follows, they wrote.

Estimates may still not have factored in the unstable state of overseas 
markets, Knapp said. China's central bank surprisingly cut interest rates on 
Thursday for the first time since the global financial crisis, as the country 
is set for its lowest rate of growth since 1999.

"It's yet another bit of a drag on these big global growth beneficiaries," 
Knapp said.

Among manufacturers though, there have been fewer signs of major stress. At an 
investor conference this week, officials from big U.S. industrials companies 
including Caterpillar Inc (CAT.N) and 3M Co (MMM.N) said they have not seen a 
sharp deterioration in European demand -- which they had expected to be weak -- 
but stand ready to cut back if things get worse.

3M Chief Financial Officer David Meline said at the meeting, "We have the 
flexibility should there be a significant downturn in the economy. We don't 
believe that to be the case right now."

SLOWING IN THE UNITED STATES

U.S. stocks appear to be pricing in more bad news. The S&P 500 index early this 
week briefly fell more than 10 percent from its April 2 intraday high, and has 
been under pressure for more than a month.

The index has recovered some of those losses in recent days, but has seen a big 
turnaround from the first three months of the year, when the S&P 500 rose 12 
percent.

"The sentiment level is almost as sour as it was in March of '09. We don't have 
the panic we had in '09, but I think we certainly have fear and anxiety, and it 
comes through in looking at what people are doing with their money," said Hank 
Smith, chief investment officer at Haverford Trust Co in Philadelphia.

S&P 500 revenue projections for 2.2 percent second-quarter growth have come 
down since the latter part of last year. In October, second-quarter revenue 
growth was seen at 4.3 percent, according to Thomson Reuters data.

Going forward, forecasts for revenue don't show any real signs of improving.

Thomson Reuters' revenue growth forecast for the S&P 500 is for 2.9 percent for 
the third quarter, 4.1 percent for the fourth quarter and 2.7 percent for the 
first quarter of 2013.

The S&P 500 energy sector (.GSPE) is expected to see revenue declines at least 
through early next year, the data showed.

Much of that is related to expected weakness in energy demand from Europe and 
China. In the past week, Brent crude dropped below $100 a barrel for the first 
time since October. U.S. crude oil is trading near $83 a barrel.

Energy company projections have also been dampened by natural gas prices, which 
are near lows not seen in a decade.

To be sure, the majority of S&P 500 companies have repeatedly beaten analyst 
expectations, both in terms of revenue and earnings. Sixty-seven percent of 
companies beat profit expectations for the first quarter.

But the ongoing deterioration in estimates underscores the caution analysts and 
companies are expressing - and leads to some concerns that companies are 
setting goals low so they can look better when the results come out.

In the first quarter, some companies that exceeded estimates did not see their 
stock prices rise, because the bar was repeatedly lowered.

(Reporting By Caroline Valetkevitch; Additional reporting by Scott Malone and 
Nick Zieminski; Editing by Martin Howell and Phil Berlowitz)


~Hidupmu adalah Imajinasimu~

... sent from my BlackBerry®

-----Original Message-----
From: "aryo" <[email protected]>
Sender: [email protected]
Date: Sun, 10 Jun 2012 11:04:11 
To: <[email protected]>
Reply-To: [email protected]
Subject: Re: [saham] Re: semakin jelas... be carefull...

Berarti besok senin bisa balik yang lain ya kang duren......Mantaps
Powered by Telkomsel BlackBerry®

-----Original Message-----
From: "kangduren" <[email protected]>
Sender: [email protected]
Date: Sat, 09 Jun 2012 13:36:46 
To: <[email protected]>
Reply-To: [email protected]
Subject: [saham] Re: semakin jelas... be carefull...

kemaren seru tuh, ga nyangka yunani sebegitu gigihnya membalikan keadaan, 
secara de facto yunani menang 2-1 tuh.....
banyak yg mau ane ceritain tp takut OOT :D

--- In [email protected], bonekatiup@... wrote:
>
> .
> Negara mana niih yg nanti malam bakalan Bullish, Sideways n Bearish? 
> Hehehee... 
> 
> Happy weekend bro.. :)
> 
> Salam,
> .
> Sent from my AXIS Worry Free BlackBerry® smartphone
> 
> -----Original Message-----
> From: "H Y" <h16y07@...>
> Sender: [email protected]
> Date: Sat, 9 Jun 2012 09:19:57 
> To: <[email protected]>
> Reply-To: [email protected]
> Subject: Re: [saham] Re: semakin jelas... be carefull...
> 
> Mending nikmati liburan dan cuan kemarin saja aahh.
> 
> Persiapan nonton bola nanti malam serruuu !
> 
> 3. Sabtu 9/6/2012  23.00 
>            *NL*Belanda vs *DK*Denmark  
> 4. Minggu 10/6/2012  01.45.  
>           *DE*Jerman vs *PT*Portugal
> 
> Happy weekend all...
> ~Hidupmu adalah Imajinasimu~
> 
> ... sent from my BlackBerry®
> 
> -----Original Message-----
> From: HY <h16y07@...>
> Sender: [email protected]
> Date: Sat, 9 Jun 2012 02:08:46 
> To: [email protected]<[email protected]>
> Reply-To: [email protected]
> Subject: Re: [saham] Re: semakin jelas... be carefull...
> 
> kalo ga salah... akang sempet koreksi soal stok split yg belum di adjust...
> karena saya terburu-buru ambil datanya sudah ngantuk berat.
> 
>  
>  " Hidupmu adalah Imajinasimu "  
> 
> 
> ________________________________
>  From: HY <h16y07@...>
> To: "[email protected]" <[email protected]> 
> Sent: Saturday, June 9, 2012 4:06 PM
> Subject: Re: [saham] Re: semakin jelas... be carefull...
>  
> 
>   
> ga ada yang ribut2 kang...
> yang ribut yang ga sempet ikut saran saya pada minggu lalu...
> Sunday, June 3, 2012 1:36 AM kalo ga salah saat bales email akang deh...
> jadi cuannya keburu kaburrr... 
> 
>  
>  " Hidupmu adalah Imajinasimu "  
> 
> 
> ________________________________
>  From: kangduren <kangduren@...>
> To: [email protected] 
> Sent: Saturday, June 9, 2012 3:57 PM
> Subject: [saham] Re: semakin jelas... be carefull...
>  
> 
>   
> ribut2 gini enak banget saham kek UNVR, GGRM dan basis konsumer ritel relatif 
> ga pengaruh apa2.....
> 
> --- In [email protected], "Rolla Eka P" <rollaekapermana@> wrote:
> >
> > Bukan masalah chart nya gan ( kalo chart ane ada di chartnexus, amibroker) 
> > cuman cara baca chart nya yg ane lom mudeng...perlu banyak belajar dari 
> > agan" senior
> > 
> > -----Original Message-----
> > From: "hakitrader" <hakitrader@>
> > Sender: [email protected]
> > Date: Sat, 9 Jun 2012 14:35:39 
> > To: <[email protected]>
> > Reply-To: [email protected]
> > Subject: Re: [saham] semakin jelas... be carefull...
> > 
> > Mau chart apa ? saya bisa kasih kalo ada yg minta.
> > 
> >   ----- Original Message ----- 
> >   From: Rolla Eka P 
> >   To: [email protected] 
> >   Sent: Saturday, June 09, 2012 12:31 PM
> >   Subject: Re: [saham] semakin jelas... be carefull...
> > 
> > 
> > 
> >   Perasaan semenjak masuk milis ini bisa diitung ma jari orang yg ngasih 
> > chart tp puyeng baca komen yg ga mutu
> > 
> > 
> > 
> > ----------------------------------------------------------
> > 
> >   From: dj_ohant@ 
> >   Sender: [email protected] 
> >   Date: Sat, 9 Jun 2012 05:28:33 +0000
> >   To: Saham<[email protected]>
> >   ReplyTo: [email protected] 
> >   Subject: Re: [saham] semakin jelas... be carefull...
> > 
> > 
> > 
> >   Org stress salah masuk milis lol kasian wakakakakaka
> > 
> > 
> >   Sent from my AXIS Worry Free BlackBerry® smartphone
> > 
> > ----------------------------------------------------------
> > 
> >   From: Bernardi DZ <bernardidz00@> 
> >   Sender: [email protected] 
> >   Date: Sat, 9 Jun 2012 12:27:07 +0700
> >   To: <[email protected]>
> >   ReplyTo: [email protected] 
> >   Subject: Re: [saham] semakin jelas... be carefull...
> > 
> > 
> > 
> >   nggak penting banget.. dibilang jago/nggak dibilang jago oleh pak/bu 
> > boneka juga nggak ada efeknya..
> >   hahahaha.. :D :D 
> > 
> > 
> > 
> >   2012/6/9 <bonekatiup@>
> > 
> >     .
> >     Mending lsg sebutin aja.. Senen bsk IHSG naik/turun, klo bs skalian 
> > Emiten nya..
> > 
> >     Klo tepat, baru namanya jago.. :)
> >     .
> >     Sent from my AXIS Worry Free BlackBerry® smartphone
> > 
> > ----------------------------------------------------------
> > 
> > 
> >     Kunjungi situs http://www.info-saham.com untuk informasi seputar saham.
> > 
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> > 
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