Earnings season: Chipotle Mexican Grill sizzlesLea Jakobiak
Out of the 300 companies listed on the S&P 500 that have released 2013 Q3 earnings, over 75 percent have reported positive returns, according to Saxo Bank's Peter Garnry.
He says that banks were a surprising contributor to the overall earnings report, with 3.2 percent year-over-year revenue growth. Non-financial operations also saw positive revenue growth, with operating profit up 4.7 percent and cash flow from operations up 5 percent.
The two strongest performers for Q3’s earning season were Chipotle Mexican Grill and Google. With revenue up by 15 percent, Chipotle Mexican Grill outpaced comparable restaurant’s growth of 6.2 percent, respectfully. Helping boost figures was the introduction of 37 new restaurant openings, bringing the total number of restaurants to 1,539 worldwide.
Chipotle Mexican Grill’s fellow strong performer Google generated USD 14.9 billion in gross revenue, which is an 11 percent increase from last year’s revenue of USD 13.3 billion. The United States represents the majority of Google’s revenue, generating USD 7.67 billion, or 56% of total revenue.
IBM, however, displayed disappointing results. The company’s revenue fell by 4 percent to USD 23.7 billion and as Garny pointed out, this is becoming a trend. IBM’s Chief Financial Officer Mark Loughridge commented on the declining sales stating that demand in “China was down 22 percent,” which significantly impacted sales.
Overall, Peter thinks this earnings season exhibited a series of strong performers across the board.