Total earnings for the 375 S&P 500 companies that have reported Q2 results, as of Thursday August 1st, are up +2.1% from the same period last year, with 66.7% beating earnings expectations with a median surprise of +2.7%.
Pretty much all of that earnings growth has come from top-line gains (up +1.9%), with margins essentially flat from the same period last year. Revenue surprises have been better relative to extremely weak levels in Q1, but largely in-line with historical levels.
Not to make light of Finance�� strength, but a big part of the bank earnings growth is due to loan loss reserve releases and not from loan growth. Reserve releases are a net positive as they reflect improving credit quality, but they don�� constitute the sector�� core earnings power. That said, the earnings growth picture outside of Finance is very weak.
Expectations for the coming quarters have started coming down, though they still represent a material acceleration in the growth pace, as the chart below shows. Please note that the current expected growth rates for Q3 and Q4 are down from 4% and 11% last week, respectively.
Top 5 Quality Companies To Own For 2015: NetScout Systems Inc.(NTCT)
NetScout Systems, Inc. engages in the design, development, manufacture, marketing, sale, and support of unified service delivery management, service assurance, and application and network performance management solutions worldwide. It offers nGenius Service Assurance Solution, an integrated unified service delivery management platform that provides application and service performance intelligence to enable organizations to assure network and application performance and user experience. This solution?s capabilities include intelligent early warning and service visualization, packet-level forensic analysis, planning and optimization, and service and policy validation, as well as network, application, and service performance management. The company also provides Sniffer Analysis software suite that offers a direct connection to nGenius InfiniStream appliances for forensic analysis and packet data mining to exploit the information contained within network packets; and a view i nto IP network packets revealing granular information about network and application interactions, response time, and latency metrics. In addition, NetScout Systems, Inc. offers Sniffer Portable Analyzer product family that provides portable network and application analysis capabilities for field deployments. The company?s solutions support a range of enterprise information technology operations and are deployed by telecommunication service providers. It markets and distributes its products through direct sales force, as well as through strategic channel partners, including distributors, value added resellers, and systems integrators to financial, healthcare, manufacturing, retail, technology, utilities, education, and the public sectors. The company was founded in 1984 and is headquartered in Westford, Massachusetts.
Advisors' Opinion:- [By josieclarks]
Posted-In: Markets
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There's no foolproof way to know the future for NetScout Systems (Nasdaq: NTCT ) or any other company. However, certain clues may help you see potential stumbles before they happen -- and before your stock craters as a result.
Top 5 Quality Companies To Own For 2015: Group 4 Securicor(GFS.L)
G4S plc, together with its subsidiaries, provides secure and cash solutions worldwide. It operates in two segments, Secure Solutions and Cash Solutions. The Secure Solutions segment offers integrated security solutions for commercial customers, such as risk consulting, manned security, and security systems; and the protection of critical national infrastructure, care and justice, secure facilities, and border protection for governments. The Cash solutions segment involves in the outsourcing of cash cycle management for central banks, financial institutions, and retailers. This segment also provides ATM network management, ATM cash management, ATM engineering, retail cash management, data and document management, and cash logistics services and solutions, as well as offers secure transportation of cash and valuables. The company serves energy and utilities, oil and gas, transport and logistics, ports and airports, leisure and tourism, and retail industries, as well as gover nment and financial institutions. G4S plc was founded in 1901 and is headquartered in Crawley, the United Kingdom.
Hot Performing Companies To Own For 2015: Crh Ord Eur 0.32(CRH.L)
CRH public limited company, through its subsidiaries, engages in the manufacture and supply of building materials primarily in western Europe and North America. The company produces and sells a range of primary materials, including cement, aggregates, ready-mixed concrete, asphalt/bitumen, and agricultural and chemical lime. It also produces and sells architectural and structural concrete products, clay products, fabricated and tempered glass products, and construction accessories, as well as provides a range of inter-related products and services to the construction sector. In addition, it engages in builders? merchanting activities; and operates a network of do-it-yourself (DIY) stores that market and sell supplies to the construction sector and to the general public. Further, the company manufactures and installs pre-stressed concrete flooring planks, modular precast structures, and other products used in structures, such as hotels, apartments, dormitories, and prisons ; and concrete pipes used for storm and sanitary sewer applications. It also has operations in eastern Europe, South America, the Mediterranean basin, China, India, and Australia. The company operates 138 Karwei and GAMMA brand DIY stores in the Netherlands; 19 GAMMA brand DIY stores in Belgium; 51 Hagebau brand DIY stores in Germany; and 33 Maxmat brand DIY stores in Portugal. CRH public limited company was founded in 1949 and is headquartered in Dublin, Ireland.
Top 5 Quality Companies To Own For 2015: G&K Services Inc.(GKSR)
G&K Services, Inc. provides branded uniform and facility services programs in the United States and Canada. Its facility services programs include floor mat offerings, such as traction control, logo, message, scraper, and anti-fatigue; shop, kitchen, bar, bath, dish, continuous roll, and microfiber towel products; dust, microfiber, and wet mops; fender covers; selected linen items; and restroom hygiene products. The company also manufactures work apparel garments that are used to support garment rental and direct purchase programs. G&K Services, Inc. serves automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, pharmaceutical, retail, restaurants, hospitality, government, and healthcare industries. The company was founded in 1902 and is headquartered in Minnetonka, Minnesota.
Top 5 Quality Companies To Own For 2015: Diamond Frank Exploration Inc (DOD.V)
Axe Exploration Inc. engages in the acquisition, exploration, and development of mining properties in Canada. The company primarily explores for gold, diamond, copper, silver, and palladium deposits. The company has interests in the Commandant property, which covers an area of 9,637 hectares and is located near Val d'Or town, Abitibi; the Destorbelle property that consists of 24 claims covering 953.1 hectares and is located in Rouyn-Noranda town, Abitibi. It also has interests in the Gold Peak property, which comprises 50 contiguous mineral claims covering an area of 2,184 hectares and is located to the southeast of Fault Porcupine-Destor; and the K6 property consisting of 25 mining claims covering an area of 1,322.4 hectares and is located near the Mont-Otish, north east of Chibougamau. The company was formerly known as Diamond Frank Exploration Inc. and changed its name to Axe Exploration Inc. in April 2013. Axe Exploration Inc. was incorporated in 2007 and is headquarte red in Laval, Canada.
Top 5 Quality Companies To Own For 2015: Western Asset Variable Rate Strategic Fund Inc. (GFY)
Western Asset Variable Rate Strategic Fund Inc. is a closed ended fixed income mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Western Asset Management Company, Western Asset Management Company Limited, and Western Asset Management Company Pte. Ltd. The fund invests in the fixed income markets across the globe. It seeks to invest in variable rate investment grade securities, including U.S. and non-U.S. investment grade and high yield debt, senior loans, emerging markets debt and derivatives related to these securities. The fund seeks to maintain an average duration of around one to two years with an average credit quality of BBB+. It benchmarks the performance of its portfolio against the Merrill Lynch Constant Maturity 3-Month LIBOR Index. The fund was formerly known as Salomon Brothers Variable Rate Strategic Fund Inc. Western Asset Variable Rate Strategic Fund Inc. was formed on August 3, 2004 and is domiciled in the United States.
Top 5 Quality Companies To Own For 2015: Quest Pharmatech Inc. (QPT.V)
Quest PharmaTech Inc. engages in the discovery, development, and commercialization of pharmaceutical products for the treatment of cancer and dermatological conditions based on its SonoLight technology platform. The company�s development products include oregovomab that completed Phase I and Phase II clinical trials for the treatment of ovarian cancer; SL017, which is in Phase II clinical trial for dermatology applications; SL052 that is in Phase I clinical trial for the treatment of prostate cancer; and Anti-MUC1, which is in Phase I clinical trial for the treatment of prostate cancer. It has strategic partnerships with IntelligentNano to develop water-soluble nanoformulations of SL052 and SL017; and Alberta Research Council to develop fermentation based technology to manufacture Hypocrellin B. The company was formerly known as Altachem Pharma Ltd. and changed its name to Quest PharmaTech Inc. in September 2005. Quest PharmaTech is headquartered in Edmonton, Canada.
Top 5 Quality Companies To Own For 2015: Qhr Technologies Inc. (QHR.V)
QHR Corporation provides various software solutions for the healthcare industry in Canada. The company operates in three divisions: Electronic Medical Records (EMR), Enterprise Management Solutions (EMS), and Revenue Cycle Management (RCM). The EMR division offers electronic medical records applications, application service provider hosting and data backup services, and other technology products and services for use in physicians� medical offices. Its hosting services include application hosting, technical support, offsite data storage, and business continuation services. This division markets its products under Accuro EMR brand. The EMS division provides workforce management software products comprising payroll, staff scheduling and human resources management solutions, as well as financial management software products for healthcare, social services, and public safety organizations. The RCM division provides software transaction processing services to physicians, hospit als, health plans, insurance brokers, and state governments to exchange information for health plan enrolment, health insurance eligibility, health insurance claims, claim payments, and healthcare provider collaboration of supporting patient referral and industry compliance/reporting documentation. The company was formerly known as QHR Technologies Inc. and changed its name to QHR Corporation in July 2013. QHR Corporation is based in Kelowna, Canada.
Top 5 Quality Companies To Own For 2015: Anheuser-Busch InBev (BUD)
Anheuser-Busch InBev SA/NV, incorporated on August 2, 1977, is a brewing company. The Company produces, markets, distributes and sells a balanced portfolio of approximately 200 beer brands. These include global flagship brands Budweiser, Stella Artois and Beck��; multi-country brands, such as Leffe and Hoegaarden, and many local champions, such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske and Jupiler. The Company also produces and distributes soft drinks, particularly in Latin America. The Company operates in seven segments: North America, Latin America North, Latin America South, Western Europe, Central & Eastern Europe, Asia Pacific and Global Export & Holding Companies. On October 20, 2010, Companhia de Bebidas das Americas-AmBev (AmBev) and Cerveceria Regional S.A. closed a transaction pursuant, to which they combined their businesses in Venezuela, with Regional owning an 85% interest and AmBev owning the remaining 15% in the new company. On February 28, 2011, the Company closed a transaction with Dalian Daxue Group Co., Ltd and Kirin (China) Investment Co., Ltd to acquire a 100% equity interest in Liaoning Dalian Daxue Brewery Co., Ltd. The Company�� beer portfolio is divided into global, multi-country and local brands. Beer can be differentiated into the categories, such as premium brands; mainstream or core brands, and value, discount or sub-premium brands. The Company also has a presence in the soft drink market in Latin America through its subsidiary AmBev and in the United States through Anheuser-Busch Companies, Inc. (Anheuser-Busch). Soft drinks include both carbonated soft and non-carbonated soft drinks. Its soft drinks business includes both its own production and agreements with PepsiCo related to bottling and distribution. The brands that are distributed under these agreements are Pepsi, 7UP and Gatorade. AmBev has long-term agreements with PepsiCo whereby AmBev has the exclusive right to bottle, sell and distribute certain brands of PepsiCo�� portfolio of carbonated soft drinks in Brazil. In the United States, Anheuser-Busch also produces non-alcoholic malt beverage products, including O��oul�� and O��oul�� Amber, energy drinks and related products. In the United States, its indirect subsidiary, Metal Container Corporation, manufactures beverage cans at eight plants and beverage can lids at three plants for sale to its Anheuser-Busch beer operations and United States soft drink customers. Anheuser-Busch also owns a recycling business, which buys and sells used beverage containers and recycles aluminum and plastic containers; a manufacturer of crown liner materials for sale to its North American beer operations, and a glass manufacturing plant which manufactures glass bottles for use by its North American beer operations. Advisors' Opinion:- [By Tim McAleenan Jr.]
I do not mention these things to discourage you from international stocks. I have been purchasing BP (BP) between $39-$43, and I will eventually purchase Anheuser-Busch (BUD), Nestle (NSRGY.PK), Royal Dutch Shell (RDS.B), and two or three other international companies when the stars line up. My point is that you should not feel an obligation to own international stocks simply for diversification's sake. If you find a good international stock with a business model you understand and it trades at an attractive price, then great. You should buy it. But owning international stocks does not have to be a necessary part of your strategy. Despite what Mankiw advises in the New York Times, you can build a diversified collection of "global stocks" simply by investigating where certain American multinationals generate the bulk of their sales and earnings.
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