This Great Graphic was posted on Business Insider by Sam Ro. In appears to originally come from Goldman Sachs. It captures expectations for US corporate profit-margins.
The chart contrasts the bottom up consensus with Goldman's top down forecasts. The former calls for a 9.3% increase in net margins,while the latter (Goldman) says 8.7%-8.9%.
Earnings, Goldman argues, are more sensitive to changes in margins than to GDP or sales growth. It argues that a 50 bp shift in margins equals $5 a share.
Great Graphic: US Profit Margin Expectations
Reviewed by Marc Chandler
on
February 11, 2013
Rating:
Reviewed by Marc Chandler
on
February 11, 2013
Rating:
