Honza Dvorsky According to statistics released by FactSet, despite the bad economic situation in the Eurozone, some companies in this region are doing well. The second fiscal quarter of this year will bring Apple a huge jump in revenue from Europe. Of all American companies that do business in the IT sector and publish revenues by region, Apple will be the absolute number one.
Estimated values
The S&P 500 chart shows each firm's revenue growth in the first fiscal quarter of this year (blue bar) and the expected growth in that revenue in the second quarter (gray bar). We see that of all the companies shown, only the iPhone and iPad makers will celebrate with their European revenue growing by 32,3%, compared to last year. The overall decline in growth across the industry is attributed to high unemployment and debt in Europe, yet Apple's revenue in this area will grow rapidly.
In second place in growth we see Intel with a 4,5% change compared to the same period last year. If we look at the results of the technology sector in Europe without Apple, sales growth would fall from 6,6 to 3,4 percent and revenues would even start to decline from 4 to -1,7%.
Not only the IT sector
Regardless of sector, companies in the S&P 500 are expected to grow by 3,2%. If the estimates are met, it will be the eleventh consecutive quarter of growth. In large part, this good performance (despite the financial crisis) is attributed to the solid growth of the top two companies in this rating, Apple and Bank of America. Without these two drivers, the overall rating would fall to -2,1%.
What is interesting about the mentioned data is that the decline of many companies is compensated by the great growth of a small number of successful players. As we have already mentioned, it is not only the IT sector, but also banking and the entire industry. The results would be several times worse if it were not for a few companies that, despite all the circumstances, manage to navigate even through the complicated waters of the financial recession. So let's hope more companies move into positive numbers going forward and the industry starts to flourish again.
Note (below the article):
The S&P 500 is a rating of American stock companies issued by Standard & Poor's since 1957. It is a weighted rating based on the overall value of the company. This value is calculated as the sum of the prices of all types of shares multiplied by their market prices. A change in the value of a company's shares will therefore be directly proportional to its S&P 500 rating.
