Apple to account for bulk of S&P 500's Euro zone growth in Q2
Apple's second quarter European region revenue is expected to see a 32.3 percent surge that will eclipse all other S&P 500 companies, a surprising statistic given the economic situation in the region.
According to research firm FactSet (via Business Insider), out of the ten largest S&P 500 companies by market capitalization that offer revenue breakdowns by region, Apple will be just one of three to report any sizable growth in Europe.
Earnings reports for the first quarter revealed that an average of 22.6 percent of sales for the ten companies was generated in Europe, with the region accounting for 22.5 percent of Apple's revenue. Preliminary data shows that profits will dry up for most American companies in the second quarter as the area suffers through government debt and high unemployment rates.
Bucking the trend, however, will be Apple which is expected to post second quarter growth of 32.3 percent year-over-year, well above runner-up Intel's 4.5 percent bump over the same period. The iPhone maker will account for most of the IT sector's earnings and sales growth rates which will respectively be third and second highest among the S&P 500's ten sectors. Without Apple, the tech sector's sales growth rate would fall from an expected 6.6 percent to 3.4 percent and earnings growth would drop from 4 percent to -1.7 percent.
Source: FactSet
The overall second quarter growth rate for the S&P 500 is set to come in at 3.2 percent and, if reached, would mark the 11th consecutive quarter of growth for the index. This is largely contingent on strong growth from Apple and Bank of America and without the two top performers the index's growth would fall to -2.1 percent.
According to research firm FactSet (via Business Insider), out of the ten largest S&P 500 companies by market capitalization that offer revenue breakdowns by region, Apple will be just one of three to report any sizable growth in Europe.
Earnings reports for the first quarter revealed that an average of 22.6 percent of sales for the ten companies was generated in Europe, with the region accounting for 22.5 percent of Apple's revenue. Preliminary data shows that profits will dry up for most American companies in the second quarter as the area suffers through government debt and high unemployment rates.
Bucking the trend, however, will be Apple which is expected to post second quarter growth of 32.3 percent year-over-year, well above runner-up Intel's 4.5 percent bump over the same period. The iPhone maker will account for most of the IT sector's earnings and sales growth rates which will respectively be third and second highest among the S&P 500's ten sectors. Without Apple, the tech sector's sales growth rate would fall from an expected 6.6 percent to 3.4 percent and earnings growth would drop from 4 percent to -1.7 percent.
Source: FactSet
The overall second quarter growth rate for the S&P 500 is set to come in at 3.2 percent and, if reached, would mark the 11th consecutive quarter of growth for the index. This is largely contingent on strong growth from Apple and Bank of America and without the two top performers the index's growth would fall to -2.1 percent.
Comments
OTOH, not that surprising for Europe, as we tend to buy things without paying for them. The Netherlands alone has an outstanding debt of 13 billion (*), and that is just from consumers, not government. For a large part spend on CE.
* please note we use long scale over here, so that is 13*10^9
Somebody doesn't know their maths.
And beyond that, they didn't even choose the largest companies for their comparison. They only chose 10 of the 25 largest ones.
Thank goodness for China, at least in the short run.
I am sorry but Apple has been evading tax in several countries in Europe. So I can not take it serious when you say that they made lots of benefit. I live in Spain and I would like to send you this article. It is in spanish but you can easily translate it through a translation page. And this is true for every country in Europe since the HQ is in Ireland and the same scheme applies to all other countries. You can also find more information in NY Times. I use Apple products now but the more consumer line they go the less attractive they become for me. I know it is ok to build products for everyone but they are losing the edge (especially with the new operating systems) to other competitors. Apple is not what it used to be anymore and I believe the things are going to get worse. At least for professionals, maybe not for the basic consumer...
http://economia.elpais.com/economia/2012/05/20/actualidad/1337547016_498517.html
http://news.yahoo.com/apple-evades-billions-corporate-taxes-ny-times-reports-143635000.html
I would certainly hope so! They're a public trading company; it is their goal to maximize profits. Why don't you see this? And welcome to the forum.
edit: the picture of the store in your link looks smaller than it really is:
Quote:
Originally Posted by underfunk
I am sorry but Apple has been evading tax
Note that the articles talk about taxes on profits, not any other taxes. They have already paid taxes on sales, buildings, employees salaries, etc.
Quote:
Originally Posted by JONOROM
Wow, we have data for only 10 companies (including Apple) out of 500, and you describe Apple's sales growth as the bulk of the S&P 500's Euro Zone growth? Bulk meaning majority.
Somebody doesn't know their maths.
"the ten largest S&P 500 companies by market capitalization that offer revenue breakdowns by region,"
Likely the other's don't have a (public) breakdown by region
But it's like saying that I have the largest percentage of posts in this forum by people with the name of Chris, who have posted in this topic...
No, the most valuable company in the world won't be a big contributer to economic growth. *sarcasm*
Quote:
Originally Posted by JONOROM
Somebody doesn't know their maths.
Somebody doesn't know their English.
More click bait.
'Evade' is a vague term.
If 'evade' means illegal avoidance of taxes, there's absolutely no evidence that Apple has done that. I wouldn't discount the possibility that any global company might make an error in interpreting the thousands of different tax laws they have to deal with, but there is no evidence that Apple has done so - and clearly no evidence that they have done so intentionally.
If 'evade' means reducing your tax burden via legal means, that's entirely true. Apple has an obligation to its shareholders to maximize returns and paying more in taxes than they are legally obligated to do would be foolish.
Quote:
Originally Posted by ankleskater
Somebody doesn't know their English.
Maths (plural) is also proper usage, more common in Europe than the US.
Ha! Just a bunch of WAGs from financial analysts. (yeah, they're always right on mark <sarcasm>). All presented to you from some entity called FactSet (that's funny)
Highly unlikely. Pretty much every public company with non-US sales reports by geographic segments, often broken down in a standard fashion (for comparison purposes).
To whom else woud you turn for financial analysis?!
Your remark is bit strange considering the reputation of US citizens (think of credit card loans for example); I'am sure they laugh about a tiny loan of 700€ or so, that's probably the equivalent of only one credit card (and they usually have 20 or more).
Another point is that the Dutch also save more money than anyone else and have every insurance you can think of.
J.
Quote:
Originally Posted by ankleskater
Somebody doesn't know their English.
I always felt that the English/European expression - "maths" - implies that math is not singular and absolute, but rather multiple, relative and indefinite, perhaps even untrustworthy. Thus "maths" seemed appropriate in this context.
'Eurozone' is one word that refers to country that have adopted the Euro (€). From the title, you are saying that these figures do not include the United Kingdom, Switzerland, Norway etc.
You are either a masochist or banker, publicly traded companies (financial institutions) brought America and Europe to its knees precisely by figuring out elaborate schemes to evade paying their fair share back to societies. The ones that had to bail them out so they could keep enjoying the same level of obscenely large bonuses for their execs.
Apple is no exception here and should certainly not be commended for playing one euro country against the other, pocketing politicians, and figuring out schemes to pay as little as they can back to the Eurozone on the whole.
Quote:
Originally Posted by myapplelove
You are either a masochist or banker, publicly traded companies (financial institutions) brought America and Europe to its knees precisely by figuring out elaborate schemes to evade paying their fair share back to societies. The ones that had to bail them out so they could keep enjoying the same level of obscenely large bonuses for their execs.
Apple is no exception here and should certainly not be commended for playing one euro country against the other, pocketing politicians, and figuring out schemes to pay as little as they can back to the Eurozone on the whole.
OK. first of all i want to say that I am responding to your comment as a person who is a life long ""Liberal"" (That's me).
...Please stop talking. You are not helping, and you clearly don't know what you are talking about. You just give Repubs more ammunition.