Non-GAAP Adjusted Net Income is on an after income tax basis and is what the Companies disclose as their Ongoing Core Earnings in their earnings releases. It is also what Wall Street uses, for the most part, as the Companies' Ongoing Core Earnings.
How did they come out?
Well, horribly.
Total Revenues of these 60 Corps were up only 2% in the 4Q 2012 over the 4Q 2011.
But it gets worse.
Total Earnings declined 1% in the same period.
The Retail Sector did OK, with Total Earnings up 5%.
There were some companies in the Other Sectors that did OK, but on an overall basis, companies in these Other Sectors tanked, with their Total Earnings down 4%.
I think it's fair to say that these horrible operating results of the country's best companies is mainly "on the Republicans" in both the US House and in the US Senate, for recalcitrantly continuing to reject many attempts at US economic stimulation and US job-creation by the Obama Administration. This Congress has clearly earned its recent 9% approval rating.
With these very weak earnings, there is no way the high US unemployment rate is going to decline much.
And when you look at the Retail sector, which was OK, the jobs created here are mostly part-time ones at close to minimum wage.
What the Republicans in the US Congress don't understand is that a weak US economy, high US unemployment and high US underemployment, and US Corps paying so little in corporate income tax are the main reasons for the continuing high annual US Deficits.
Granted, spending does need to be wisely cut, especially in the Dept of Defense.
But let me illustrate how the Republicans in the US Congress are so out of touch on spending.
These above 60 of the best US companies generated Total Earnings in the most recent quarter of $26,553 mil, which was 5.87% of their Total Revenues of $452,601 mil.
On the other hand, the largest Non-Profit Hospitals generated Hospital Operating Income in the most recent year of 4.83% of their Total Operating Revenues. And when you add in a normal amount of hospital investment earnings, you get Total Hospital Earnings pretty much matching the 5.87% earnings margins generated by the above 60 companies in the private sector.
No, I'm not kidding. Here's the link on my earlier post of the audited Hospital Operating Income of the country's largest Non-Profit Hospital Organizations.
Audited Hospital Operating Income of 53 of the largest Non-Profit Hospital Organizations
So the US Republicans are saying it's OK for the Non-Profit Hospitals to earn the same profits as the companies in the private sector, but at the same time, they demand that Medicare recipients get their benefits cut. That's not even close to being fair.
But this isn't the whole story.
In 2014, after the Affordable Care Act totally kicks in, these above Non-Profit Hospital profit margins will be growing by leaps and bounds. Why? Because the huge amounts of Bad Debts Expense will drop significantly and also the Charity Care Income will increase significantly, both due to many of the uninsured then being insured and also due to many of the underinsured then being better insured.
I suggest that when you have the huge Non-Profit Hospital sector generating markedly higher profit margins than the best large companies in the private sector, you have a US economy that is clearly off course, and a US Congress that is clearly clueless on US health care.
And how could the CEOs and stockholders of the country's best companies like it that the country's Non-Profit Hospitals will be generating on average higher profit margins than what their For-Profit companies generate? The US capitalistic system has gone totally askew here.
Below here are these 60 US Big Corps, as well as their Earnings and Revenues, for the 4Q 2012 and the 4Q 2011:
| 4Q 2012 | 4Q 2011 | ||||||
| Non-GAAP | Non-GAAP | ||||||
| Adjusted | Adjusted | Increase | 4Q 2012 | 4Q 2011 | Increase | ||
| Net | Net | (Decrease) | Total | Total | (Decrease) | ||
| Big Corp | Income | Income | % | Revenues | Revenues | % | |
| mils of $s | mils of $s | mils of $s | mils of $s | ||||
| Technology | |||||||
| Oracle | 3,122 | 2,784 | 12% | 9,094 | 8,792 | 3% | |
| Cisco Systems | 2,569 | 2,322 | 11% | 11,876 | 11,256 | 6% | |
| Hewlett Packard | 2,281 | 2,350 | -3% | 29,959 | 32,122 | -7% | |
| Accenture | 766 | 712 | 8% | 7,668 | 7,589 | 1% | |
| Dell | 679 | 983 | -31% | 13,721 | 15,365 | -11% | |
| Adobe Systems | 308 | 333 | -8% | 1,153 | 1,152 | 0% | |
| Agilent Technologies | 303 | 296 | 2% | 1,767 | 1,728 | 2% | |
| Nvidia | 246 | 217 | 13% | 1,204 | 1,066 | 13% | |
| NetApp | 189 | 236 | -20% | 1,541 | 1,507 | 2% | |
| Analog Devices | 179 | 184 | -3% | 695 | 716 | -3% | |
| Paychex | 148 | 140 | 6% | 569 | 546 | 4% | |
| Jabil Circuit | 128 | 136 | -6% | 4,637 | 4,327 | 7% | |
| Marvell Technology | 113 | 244 | -54% | 781 | 950 | -18% | |
| SAIC | 112 | 117 | -4% | 2,870 | 2,790 | 3% | |
| Autodesk | 108 | 102 | 6% | 548 | 549 | 0% | |
| Applied Materials | 70 | 271 | -74% | 1,646 | 2,182 | -25% | |
| Micron Technology | (275) | (187) | -47% | 1,834 | 2,090 | -47% | |
| Total all 17 Techs | 11,046 | 11,240 | -2% | 91,563 | 94,727 | -3% | |
| Retail | |||||||
| Walmart | 3,825 | 3,501 | 9% | 113,929 | 110,226 | 3% | |
| Home Depot | 1,112 | 934 | 19% | 18,130 | 17,326 | 5% | |
| Target | 595 | 584 | 2% | 16,929 | 16,402 | 3% | |
| Walgreens | 553 | 619 | -11% | 17,316 | 18,157 | -5% | |
| TJX | 462 | 406 | 14% | 6,411 | 5,793 | 11% | |
| Lowes | 449 | 449 | 0% | 12,073 | 11,852 | 2% | |
| Costco | 421 | 357 | 18% | 23,715 | 21,628 | 10% | |
| Staples | 310 | 324 | -4% | 6,353 | 6,481 | -2% | |
| GAP | 308 | 193 | 60% | 3,864 | 3,585 | 8% | |
| Kroger | 243 | 198 | 23% | 21,807 | 20,594 | 6% | |
| Bed Bath & Beyond | 233 | 229 | 2% | 2,702 | 2,344 | 15% | |
| Kohls | 215 | 211 | 2% | 4,490 | 4,376 | 3% | |
| Dollar General | 210 | 172 | 22% | 3,965 | 3,595 | 10% | |
| Autozone | 203 | 191 | 6% | 1,991 | 1,924 | 3% | |
| Ross Stores | 160 | 144 | 11% | 2,263 | 2,046 | 11% | |
| Nordstrom | 146 | 127 | 15% | 2,808 | 2,478 | 13% | |
| Macy's | 145 | 139 | 4% | 6,075 | 5,853 | 4% | |
| Dollar Tree | 117 | 105 | 11% | 1,721 | 1,597 | 8% | |
| Best Buy | 10 | 173 | -94% | 10,753 | 11,145 | -4% | |
| JC Penney | (203) | 38 | -634% | 2,927 | 3,986 | -27% | |
| Sears Holding | (211) | (272) | 22% | 8,857 | 9,405 | 22% | |
| Total all 21 Retail | 9,303 | 8,822 | 5% | 289,079 | 280,793 | 3% | |
| Other Sectors | |||||||
| Medtronic | 902 | 898 | 0% | 4,095 | 4,023 | 2% | |
| Deere | 689 | 672 | 3% | 9,792 | 8,612 | 14% | |
| General Mills | 577 | 527 | 9% | 4,882 | 4,624 | 6% | |
| Discover Financial Services | 551 | 513 | 7% | 1,660 | 1,487 | 12% | |
| Nike | 521 | 480 | 9% | 5,955 | 5,546 | 7% | |
| Mosaic | 451 | 626 | -28% | 2,536 | 3,015 | -16% | |
| FedEx | 438 | 497 | -12% | 11,107 | 10,587 | 5% | |
| Monsanto | 342 | 134 | 155% | 2,939 | 2,439 | 21% | |
| HJ Heinz | 292 | 263 | 11% | 2,827 | 2,814 | 0% | |
| Campbell Soup | 279 | 265 | 5% | 2,336 | 2,161 | 8% | |
| ConAgra Foods | 238 | 210 | 13% | 3,736 | 3,432 | 9% | |
| Joy Global | 208 | 194 | 7% | 1,595 | 1,335 | 19% | |
| Brown Forman | 173 | 158 | 9% | 1,014 | 1,014 | 0% | |
| PVH | 173 | 138 | 25% | 1,643 | 1,654 | -1% | |
| JM Smucker | 158 | 147 | 7% | 1,629 | 1,514 | 8% | |
| Apollo Group | 138 | 165 | -16% | 1,055 | 1,172 | -10% | |
| Smithfield Foods* | 137 | 181 | -24% | 3,226 | 3,313 | -3% | |
| Hormel Foods | 134 | 118 | 14% | 2,170 | 2,104 | 3% | |
| Constellation Brands | 119 | 101 | 18% | 767 | 701 | 9% | |
| Carnival | 98 | 216 | -55% | 3,579 | 3,696 | -3% | |
| H&R Block | (100) | (112) | 11% | 137 | 129 | 11% | |
| Navistar* | (314) | 275 | -214% | 3,279 | 4,323 | -24% | |
| Total all 22 Other | 6,204 | 6,666 | -7% | 71,959 | 69,695 | 3% | |
| Total all 60 | 26,553 | 26,728 | -1% | 452,601 | 445,215 | 2% |
* Non-GAAP Adjusted Pretax Income, since Non-GAAP Adjusted Net Income wasn't disclosed.
This Total Net Income decline of 1% switches to a slightly positive Earnings Per Share growth due to the heavy stock buyback programs of many of these companies. To illustrate this point, below here is the Net Income change and the Earnings Per Share change for the five largest earnings companies of the above 60:
| EPS Change | |||
| 4Q 2012 | 4Q 2012 | Better Than | |
| Net Income | EPS | Net Income | |
| Change | Change | Change | |
| Walmart | 9% | 11% | 2% |
| Oracle | 12% | 19% | 7% |
| Cisco Systems | 11% | 12% | 1% |
| Hewlett Packard | -3% | -1% | 2% |
| Home Depot | 19% | 23% | 4% |
| Average all 5 | 3% |
