For the last few quarters, I have been commenting upon the general lack of revenue growth in corporate results. I have focused on a variety of diversified manufacturers and distributors, all of them well-respected S&P500 firms. My last comment on this issue was on January 29.
For the recently released 1Q2010 financial results, it is hard to generalize the revenue growth or lack thereof. Some companies have been posting seemingly strong, double-digit growth, but this has been against weak year-ago results. It appears that many of the firms that have the strongest revenue growth have achieved this growth via sales to the Asia region.
It will be interesting to monitor these revenue growth figures going forward. Revenue growth during our current period of economic weakness is a key issue, and generally lacks recognition, especially compared to earnings growth and whether companies are matching or beating earnings “expectations.”
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SPX at 1173.6 as this post is written