S&P 500 is expected to clock higher sales growth of 6% for full-year 2014, while index-level EPS expectations would remain unchanged for rest of 2014
Dissecting 1Q 2014 results of S&P 500 (INDEXSP:.INX) companies, Goldman Sachs analysts anticipate earnings and sales would grow while margins would remain steady at peak levels.
Amanda Sneider and team at Goldman Sachs in their report dated May 2, 2014 point out Utilities firms beat expectations thanks to higher electricity volumes / power prices driven by abnormal weather. The analysts report has been published after results of 375 companies have been announced, representing 80% of equity cap in S&P 500.
S&P 500: Margins flat at peak levels
The Goldman Sachs analysts point out that trailing four-quarter margins equal 8.8% for 1Q 2014 and have been largely unchanged for three years. The following graph highlights that for the past three years, trailing four-quarter margins have remained essentially flat, ranging from 8.4% to 8.9%:
The analysts forecast margins will equal 8.9% for full-year 2014, unchanged versus 2013....MORE
