S&P 500 Sectors & Industries Profit Margins

S&P 500 Sectors & Industries Profit Margins (quarterly)

Yardeni Research, Inc.

October 18, 2023

Dr. Edward Yardeni

516-972-7683 eyardeni@

Joe Abbott

732-497-5306 jabbott@

Please visit our sites at blog.

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Table Of Contents Table Of Contents

S&P 500 Operating Profit Margins

S&P 500 Profit Margin

3-6

S&P 500 Sectors Forecasted & Actual Profit Margins

7-8

Communication Services

5-6

Consumer Discretionary

7-8

Consumer Staples

9

Energy

10

Health Care

11

Industrials

12

Information Technology

13

Materials

14

October 18, 2023 / S&P 500 Sectors & Industries Profit Margins

Yardeni Research, Inc.



S&P 500 Profit Margin

Figure 1.

16

14

S&P 500 PROFIT MARGIN (percent, quarterly)

12

10

16

14

12

Q2

10

8

8

6

6

4

4

2

2

0

0

-2

-2

S&P 500 Profit Margin

-4

Operating* (11.8)

-4

Reported** (10.5)

-6

-6

-8

-8

-10

-10



-12

-12

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

* S&P 500 operating earnings per share (I/B/E/S data) divided by S&P 500 revenues per share. ** S&P 500 reported earnings divided by S&P 500 revenues per share.

Source: Standard & Poor's Corporation and I/B/E/S data by Refinitiv.

Figure 2.

14

14

S&P 500 PROFIT MARGIN

13 (percent, trailing four-quarter average)

13

12

Q2

12

11

11

10

10

9

9

8

8

7

7

6

6

5

5

4

4

3

Operating (11.9)

3

2

Reported (9.9)

2

1

1



0

0

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Source: Standard & Poor's (revenues and reported EPS) and I/B/E/S data by Refinitiv (operating EPS).

Page 3 / October 18, 2023 / S&P 500 Sectors & Industries Profit Margins

Yardeni Research, Inc.



S&P 500 Profit Margin

Figure 3.

16

S&P 500 OPERATING PROFIT MARGIN (percent)

14

Quarterly (11.8)

12

Trailing four-quarter

average (11.9)

10

16

14

Q2

12

10

8

8

6

6

4

4



2

2

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Source: Standard & Poor's Corporation (revenues) and I/B/E/S data by Refinitiv (operating EPS).

Figure 4.

15

S&P 500 REPORTED PROFIT MARGIN (percent)

10

15

Q2

10

5

5

0

0

Quarterly (10.5)

-5

Trailing four-quarter

-5

average (9.9)

-10

-10



-15

-15

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Source: Standard & Poor's Corporation.

Page 4 / October 18, 2023 / S&P 500 Sectors & Industries Profit Margins

Yardeni Research, Inc.



S&P 500 Profit Margin

Figure 5.

14

S&P 500 PROFIT MARGIN (percent, dividing forward earnings by forward revenues)

23 24

14

13

13

10/12

12

12

11

11

10

10

9

9

8

Consensus Forecasts

8

Annual

52-week forward* (12.7)

7

7



6

6

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

* Time-weighted average of the consensus estimates for current year and next year. Monthly through December 2005, then weekly. Source: I/B/E/S data by Refinitiv.

Figure 6.

14

S&P 500 PROFIT MARGIN MEASURES (percent)

13

12

11

14

13 10/12

Q2

12

11

10

10

9

9

S&P 500 Operating Profit Margins

Forward*

8

Actual (trailing 4Q average)

8

7

7

6

6



5

5

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

* Forward earnings divided by forward revenues. Source: I/B/E/S data by Refinitiv and Standard & Poor's.

Page 5 / October 18, 2023 / S&P 500 Sectors & Industries Profit Margins

Yardeni Research, Inc.



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