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A Last Look at Second-Quarter Revenues

August 15, 2012

S&P 500 Index revenue growth and the breadth of that growth across sectors have continued to moderate.
-Stuart Freeman, chief equity strategist, Wells Fargo 
-Scott Wren, senior equity strategist, Wells Fargo

S&P 500 Index revenue growth and the breadth of that growth across sectors have continued to moderate. While only 34% of S&P 500 companies generated better than expected revenues for second quarter 2012, 68% reported better than expected earnings. Stronger margins continue to take up the slack for revenues. S&P 500 Index companies continue to manage their expenses and balance sheets very well, and continued slow growth is likely as these are companies with favorable access to capital and opportunities for international expansion.  However, margin expansion cannot offset slow international growth indefinitely.

Attached, please find the latest edition of Equity Strategy Weekly, "A last look at second-quarter revenues with 90% of S&P 500 companies reported," by Chief Equity Strategist Stuart Freeman and Senior Equity Strategist Scott Wren. If you have any questions about this report, or would like to speak directly with either Stuart Freeman or Scott Wren, please let me know. 



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