Anonymous ID: 6719dd Feb. 28, 2019, 12:18 p.m. No.5436875   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>6887

Margins, Not Revenue, Have Been The Main Driver Of EPS Growth This Cycle

 

Two weeks ago, when discussing one of the more fascinating observations of the current market and business cycle, using Goldman data we showed that while in the US earnings have been responsible for roughly half of the 303% rise in stock prices, in Europe valuation expansion has been the sole driver of the 111% growth in equity prices. In other words, Europe has seen no earnings growth over the past decade!

 

Now, in a follow up report, Goldman drills down on the components of earnings growth (or lack thereof in the case of Europe), which are two: either sales or margin growth. And here, too, there is a remarkable observation that makes the current business cycle unique: as Goldman's Lilia Peytavin writes, this cycle has been unusual in that margin expansion has driven more than 60% of profit growth in both the US and Europe. This contrasts with previous cycles, where revenue growth, a function of the pace of nominal GDP growth, drove more than 70% of the rise in profits. The chart below shows the contribution of sales and margins to EPS growth (ex Financials) in the US and in Europe in the current cycle and in previous cycles.

Anonymous ID: 6719dd Feb. 28, 2019, 12:48 p.m. No.5437221   ๐Ÿ—„๏ธ.is ๐Ÿ”—kun   >>7239

Tesla suspends orders on website ahead of 5 pm ET announcement

 

Source: Tesla

 

The wait is almost over, even if no one knows what we're waiting for.

 

Electric carmaker Tesla suspended all orders on its website and redirected users to a page teasing a mystery announcement CEO Elon Musk said is coming at 5 p.m. ET Thursday.

 

Users who attempt to go to any of the company's ordering pages are redirected to a site that says: "The wait is almost over. Great things are launching at 2pm."

 

Whatever Tesla will launch is still a mystery. Investors have been expecting updates on several fronts, including the arrival of Tesla's long-promised $35,000 Model 3, a version of the sedan Tesla has been promising since it unveiled the car in 2016.

 

https://www.cnbc.com/2019/02/28/tesla-suspends-online-orders-ahead-of-announcement-redirects-website.html